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INDUSTRIALIZING ALBANIA DURING COMMUNISMCASE STUDY: ELBASAN 1960-1991

By:

Rozeta Bici

Submitted to:Central European University

History Department

In partial fulfillment of the requirements for the degree of

Master of Arts

Supervisor: Professor: Constantin IordachiSecond Reader: Jacek Kochanowicz

Budapest, Hungary

2007

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SSttaatteemmeenntt ooff CCooppyyrriigghhtt

“Copyright in the text of this thesis rests with the Author. Copies by any process, eitherin full or part, may be made only in accordance with the instructions given by theAuthor and lodged in the Central European Library. Details may be obtained from thelibrarian. This page must form a part of any such copies made. Further copies madein accordance with such instructions may not be made without the written permissionof the Author.”

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AAbbssttrraacctt

The communist regimes in various regions of the world have been subject to

intense academic interest. To date, scholarly research has nevertheless focused

mostly on political aspect, pointing out the lack of civil rights and liberties under

communist totalitarian systems. The same case is valid for the study of communism in

Albania, as well. A majority of the works on the history of the communist regime in

Albania either glorify the regime if they are products of that period, or blame it for its

obvious negative sides, if these works have been written after the regime’s collapse.

In an effort to overcome this dichotomy, the current thesis focuses on economic

history, especially on the industrialization aspect I argue that the Albanian economy

underwent a total transformation under communism, especially by switching its profile

from an agricultural country into an industrial one, by emulating the Soviet models of

industrialization. I have attempted to discover to what extent the Soviet model was

implemented in Albania and what was its outcome. In exploring the adaptation of

Soviet blueprint to Albanian realities, I have also interviewed former communist leaders

of Albania, who nowadays admit mistakes were made in the past, even if they are not

fully aware of the high social costs of industrialization. Despite certain, the totalitarian

characteristics of the communist regime were present in both cases, the Soviet and

Albanian ones, and this is notable in the campaign of industrialization, as well.

In order to have a clear picture of the process of industrialization, the factors

and the role of each factor, including the role of the leader, I consulted various

sources, written and unwritten ones, from unpublished interviews, archival documents,

legislation and to the published books and articles. Hence the use of oral history and

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microhistory theories, as I deal in my thesis in national and local level, with the case of

Elbasan, were relevant in the material analysis to come to conclusions.

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AAcckknnoowwlleeddggmmeennttss

I appreciate the help of my supervisor, Prof. Constantin Iordachi and

Jacek Kochanowicz, whose guidance and advice helped me a lot during this year and

for the completion of this thesis. Special thanks go to my family for the assistance

during my research, as without their support it would have been impossible to

complete this study. I would like to thank Mr. Ramiz Alia for his willingness for the

interview and my other interviewees, without leaving aside Mr. Blendi Fevziu for

facilitating my work with the contacts and Prof. Guido Franzinetti for supplying me with

literature as well.

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Table of Content

Statement of Copyright ...................................................................................................iAbstract.......................................................................................................................... iiAcknowledgments ......................................................................................................... ivList of Tables................................................................................................................. BIntroduction .................................................................................................................... IChapter 1: Theoretical and Methodological Aspects..................................................... 11.1. Some Theoretical Aspects of Industrialization under Communism ........................ 11.2. Some Methodological Considerations.................................................................. 161.3. Soviet Models of Industrialization in Soviet Union................................................ 20Chapter 2: Industrialization of Albania during Communism......................................... 312.1. The Economic Circumstances of Albania before the Communist Takeover......... 322.2. The Communist Takeover, the Leader’s, Ideology and the Party’s Role inEconomic Policies....................................................................................................... 432.3 The Industrialization Project and the Means to Achieve it..................................... 512.4. Industrialization of Albania during Communism ................................................... 582.5. Legal and Political Aspects of Industrialization of Albania during Communism.... 68Chapter 3: The Transformation of Elbasan during Communism ................................. 803.1. The Economic Circumstances of Elbasan before the Communist Takeover........ 833.2. The Case of Elbasan after the Communist Takeover........................................... 873.3. The Political Reflection of Elbasan’s Industrialization ........................................ 103Conclusions .............................................................................................................. 112Bibliography .............................................................................................................. 120

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LLiisstt ooff TTaabblleess

Table 1: Gross Industrial output by forms of ownership (Per cent of total)................. 26Table 2: Investments of SVEA in Albania.................................................................... 35Table 3: Sector of Extracting Minerals (in tons) .......................................................... 39Table 4: World War II Damages per Country per capita.............................................. 41Table 5: Balance of Industrial Production of 1963....................................................... 75Table 6: Population of Elbasan ................................................................................... 93Table 7: Number of Workers in the Metallurgical Plant in 1966-1967 ......................... 93Table 8: Economic development of Albania (1990-1996).......................................... 111

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IInnttrroodduuccttiioonn

“Albania is a country as old as the Balkans itself, inhabiting the Balkans before

the Greek world, the Roman occupation and the Slavic invasion, which survived

slavery and which inhaled to be alive, in every part where Albanians struggled for

independence and are still struggling as in Kosova”1. One of the characteristics of

Albanian history is the relation to its endless wars for independence, an independence,

which would be gained on November 28, 1912. This independence would last for a few

months due to the Balkan Wars, which would separate it definitely from some of its

territories, such as Kosova, Çamëria, part of Macedonia and part of Montenegro as

well. This was the result of the Conference of Ambassadors in London in 1913.

This would not be the last hardship for Albania, as it experienced other war

disasters, such as World War I and World War II. The end of the latter had a strong

impact on countries in Central and Southeastern Europe. Nevertheless, Albania was

involved in World War II due to its invasion and then occupation by Fascist Italy in

1939; later on, Albania was occupied by Nazi Germany experiencing thus two

totalitarian regimes. The fight against the Germans led to the creation of the Albanian

National Liberation Army followed by the foundation of the Albanian Labor Party

(PPSH) in 1941. The leader of these forces was Enver Hoxha, a figure who

distinguished himself during the war of liberation. Finally the Albanian army succeeded

in liberating Albania on November 29, 1944.

1 Sheradin Berisha, “Kryengritja Shqiptare e Vjeshtës së Vitit 1913” (The Albanian Appraisal of Autumn1913), in http://www.agimi.com, 2004, (last visited February 2007).

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The National Liberation War was the beginning of the charismatic leadership of

Enver Hoxha, who later on would be regarded by Albanians as the savior of the

country with the partisan forces. All this would lead to the communist take-over and the

creation of the new government headed by Enver Hoxha, in which the new leadership

would embark on an assiduous campaign of reconstructing and transforming Albania.

This campaign was led by Enver Hoxha, who appointed himself to various posts in the

new government, such as head of the Central Committee of the Albanian Labor Party

(PPSH), Prime Minister from 1944-1954, simultaneously holding the ministry of foreign

affairs from 1946 to 1953 and President of Albania. As first secretary of the Party’s

Central Committee and President of Albania as well he retained effective control of the

government until his death.

Albania's economy was revolutionized under Enver Hoxha’s long rule, as he

aimed at transforming Albania from a semi-feudal country into an industrialized one,

which he succeeded in doing. Yet, to date there have been few studies about the

economic policy of the Albanian communist regime, especially in the field of

industrialization, the existing works focusing mainly on political history. These studies

have focused mostly on the negative effects and the control of people’s life, the

surveillance and the purges as well. The works of various authors have some

limitations. For instance Emil Ginar “Shqipëria-Historia 1966-1968” (Albania- History

1966-1968)2, who concentrates in a small span of time and writes about the Albanian

political life at that period. Edith Durham in “Histori e Letrarizuar Balkanike” (Literary

2 Ginar, Emil. “Shqipëria-Historia 1966-1968” (Albania- History 1966-1968), (Tiranë: Naim Frashëri,1992).

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Balkan History)3, sees the Albanian history in a literary way and unfortunately escapes

the real history focus. Whereas Nikolas J. Costa “Albania: A European Enigma”4 bases

his book on the stories told by his grandfather and just one testimony is never enough

to write history. Other names that focus only on the negative sides of the regime are:

F. Lubonja5, R. Papa6 who throughout their articles criticize the regime for the purges,

the persecutions and the limitations of human rights. Names of the ones who have

concentrated just on the political aspect of the communist regime are innumerable. Yet

no one to date has attempted to consider the two sides of the communist regime,

which as the other systems had its own pros and cons, but which reconstructed

Albania in terms of the economy. In the everyday life discussions of people, there are

visibly two types, the ones who are nostalgic for the regime and the others that

suffered from it. Despite this, the existing common known knowledge about the

relations of Albania with the Soviet Union and the economic transformation according

to the Soviet examples is still present. In reality this is a topic that needs some

consideration as well.

My MA thesis argues that Albania experienced a complete socio-economic and

political transformation under communist rule but at a high cost. This transformation

was clearly noticeable in the development of industry, as the communist government

succeeded in industrializing Albania and in changing the national economic direction

making good use of the natural resources. My main directions of research are the

3 Durham, Edith. “Histori e Letrarizuar Balkanike” (Literary Balkan History), (Tiranë: Naim Frashëri,1995).4 Costa, Nikolas J. Albania: A European Enigma, (Boulder: East European Monographs, c1995)5 Fatos Lubonja, “Fatos Lubonja, “Mbi Krimet e Komunizmit” (On the Crimes of Communism) inPërpjeka (Endeavor), January 19, 2007.

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influence of the Soviet industrial model in Albania, the legislation on industry in Albania

and the development of industry. I have used the comparative method to compare the

type of industrialization prevalent in the Soviet Union and in Albania to explain the

adaptation of the Soviet models of industrialization to Albania due to the economic and

technical aid of the Soviet Union.

While providing a general overview of the industrial development of Albania

during communism, I have focused in more detail on the case study of Elbasan, the

most industrialized Albanian city. I have concentrated my research on the period of the

industrial boom in Albania, especially of Elbasan, from the late 1960s up 1991. This

city was selected for the most important branches of industry. The outcome of this

regime’s plans was the creation of an industrialized town and Elbasan was to be the

situation of many industrial state enterprises and factories. This resulted in some

significant outcomes for it, like the increase in its economy and the increase of the

population number. Elbasan became a clear example of the impact of communist

plans. It is a city situated in the center of Albania and the climate and mineral

resources were available to make the communist regime concentrate the majority of

industrial branches in it and in its surroundings as was the case of Cërrik’s petrol

refinery.

I have analyzed mainly primary and secondary sources. The primary sources

were the archival documents in Elbasan and Tirana in the Political Central Committee

archives of PPSH (Albanian Labor Party), as well as documents in the main

enterprises or plants during communism. These documents together with the others in

6 Robert Papa, “Fokus nga Robert Papa” (Focus from Robert Papa), (A program conducted form himfrom 1991-2007 in various TV channels).

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the Municipality of Elbasan testified the development of these enterprises and

simultaneously their administrative structure. The legislation and the decisions made

from the Council of Ministers analysis were my focus as well. They demonstrated the

way that the process of industrialization was reflected in the political life and the ways

they were specified to function in the Albanian constitution.

The other primary source was composed of the live interviews of various

authorities. The interview with Mr. Ramiz Alia, Minister, Member of the Politburo and

later on President of Albania during this period alleviated my work in revealing the real

ways of industrialization of Albania, specified the role of the leader, as well as the

engineers. Furthermore, it facilitated the understanding of decision-making and he

confessed to some of the mistakes made in the course of following the Soviet Models

of industrialization and implementing them in Albania. The other concern of this

interview was related to the reasons for choosing Elbasan as the target for

industrialization compared to others. The other interviews, such as the interview of one

of the Ministers of Industry and the others of the directors of important enterprises

shed light on the administrative issues and the position of the directors in the work

process. Moreover, they focused on their dependence on the regime and the leader’s

decision, which they aimed at specifying.

The secondary sources were composed of books in English and in Albanian

and additionally the main newspapers published in Albania during the Dictatorship of

the Proletariat period such as “Zëri i Popullit” (People’s Voice), “Bashkimi” (Unification)

and “Shkumbini” (Shkumbini). The books served as a first stimulus on which things to

focus attention on and to consider what was written, the way it was judged and the

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gaps that need to be filled. The newspaper articles revealed the data of the

development of industry in Albania and the way that the development was discussed in

political arena.

Albania underwent economic development during the communist regime and

all this development was reflected in Elbasan, in which the leaders made good use of

its natural resources. This would lead to economic growth due to the decisions taken

from the Central Committee of PPSH and the Council of Ministers.

I have divided my thesis into three chapters in accordance with the periodization

and aims of my thesis. The first chapter provides some theoretical and methodological

aspects about industrialization during communism. The analysis of the methods I have

employed and furthermore the existing literature is the focus of this chapter as well.

Moreover, as I will consider the Soviet models of industrialization implemented in

Albania, I have outlined the Soviet Models first implemented in Soviet Union itself in

order that the transportation model can be visible. Hence the nature of these models,

the role of the Soviet leaders, the role of the party and the role of heavy industry,

pursued by the outcome of these models are the concerns of this chapter. Concluding I

have summarized the findings of this chapter in terms of the implementation of these

models and the shaping of the territory for the Soviet leaders to employ them as Soviet

Union itself implemented them on basis of the observations of its leaders in Western

countries.

The study of the industrialization process in Albania during communism in my

thesis is reflected in national and local perspective as well. As a result my second

chapter is concerned with the national level where I have given an overview of the

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economic circumstances of Albania before the establishment of communism. The

other concern of this chapter is the role of the leader and the party in the economic

policies implemented in Albania. Then the process of industrialization in Albania and its

stages occupy the other aspect covered in this chapter. The means of industrialization

and the legal and political aspects of industrialization occupy the other part as it would

be of academic relevance to observe the way industrialization was discussed politically

and reflected in the media and also to take into account the legislation related to the

process of industrialization.

The last chapter addresses Elbasan, my case study. I have provided an account

on the history of Elbasan before the communist takeover, in order to clarify its

development during communism. After this the economic transformation of Elbasan

during the communist era is the core section of this chapter. This sub-chapter gives a

full account on the stages of industrialization of Elbasan focusing on the most

important enterprises or factories. This chapter reveals the reasons for the

transformation of Elbasan into the most industrialized city of Albania during

communism. The other aspect treated in this chapter is the political and legal aspect

on the process of industrialization of Elbasan. Concluding, I have given an account of

what the communist rule resulted to be for Elbasan, especially if we compare it to the

consequences of the political regime change. There is a short analysis of the

enterprises’ change after the collapse of communism in order to contrast the outcome

of the communist regime in Elbasan. Furthermore, a short discussion on the mistakes

made by the regime by following the Soviet example is placed in the concluding

remarks.

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It is hoped that the thesis will contribute to the study of the communist regime in

Albania, especially with regard to its strategy on industrial development. I aim to

underline the transfer and adaptation to Albanian conditions of the Soviet industrial

policies and their outcome. Not only this, but my thesis can be considered as a basis

for comparison of the economic prosperity in communism and the unconsolidated

democracy. This thesis can serve as one of the few objective studies on communism

and especially on Elbasan, with the purpose of demonstrating the importance of that

city and especially in demonstrating the potential resources it has and how much they

are made good use of at the present time.

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CChhaapptteerr 11:: TThheeoorreettiiccaall aanndd MMeetthhooddoollooggiiccaall AAssppeeccttss

11..11.. SSoommee TThheeoorreettiiccaall AAssppeeccttss ooff IInndduussttrriiaalliizzaattiioonn uunnddeerr CCoommmmuunniissmmEEnnvveerr HHooxxhhaa:: - The Party’s program to build a

complex industry, heavy or lightone, for its enlargement with newsectors of modern production wasverified from practice that it was acompletely realizable program.1

This is one of the many speeches of the communist leader of Albania that

displays the focus of the government. This government established in Albania after

World War II was as the others in the region, a communist one. The Communist

regime had similar consequences in all countries, no matter their geographical

position. Yet, arguably its greatest impact was in Central and Southeast Europe. As a

totalitarian regime, communism had a largely negative impact on societies; it would

nevertheless be of relevant academic importance to explore the two sides of the coin,

thus taking into account the negative as well as the positive effects of communism.

Notwithstanding political repression, purges and the lack of human rights, very much

discussed in the academic literature, a deeper study would also uncover long-lasting

positive sides of the communist rule.

The peculiar characteristics of each country shaped the communist type regime

in each country, accounting for the different long time duration. This was present int eh

case of Albania as it did not separate its Stalinist communist type, despite Soviet Union

did change its. In coping with this challenge, after delineating general features at

regional level, my research focuses on a single national case study that of Albania. In

1 Enver Hoxha, Raport në Kongresin e VII të PPSH (Report in the Seventh Congress of PPSH), (Tiranë:8 Nëntori, 1976), 4.Enver Hoxha- “Programi i Partisë për ndërtimin e një industrie komplekse, të rëndë e të lehtë, përzgjerimin e saj me sektorë të rinj të prodhimit modern u vërtetua nga praktika se ishte një programplotësisht i realizueshëm”.

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this perspective I will concentrate on national and local level, concretely speaking,

Albania and Elbasan.

My Focus

My focus is on the models of industrialization implemented in Soviet Union that

were later on transported in Albania and employed from the Albanian communist

regime to industrialize Albania and on the degree they were applicable for Albania as

the total industrialization of the country was the main goal of the government. Industry

became the target of the communist governments during the implementation of

controlled economy and the communist leaders operated through the Five-Year Plans

for the completion of the entire process of industrialization. The concern for the

industrialization process was the development of heavy industry and the creation of

industrial cities like the Soviet Magnitogorsk as well. In the same vein, the Albanian

government transformed Elbasan from a generally agricultural into the settler of most

of the industrial branches. From this perspective, the industrialization of the country is

closely related to urbanization. In the case of Albania several new cities were created

such as Kukës or Mat where some industrial works were placed including the hydro-

energetic plants2.

The idea of leadership embarking in assiduous campaigns to industrialize the

country runs through my thesis, mostly when talking about the role of the leader of the

country in decision-making especially in my case study, Albania. Before dealing with

the stages of industrialization during communism it is important to define some of the

key terms that I employ in my thesis.

2 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste (Constructions in the Socialist Albania), (Tiranë:

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Definition of Terms

Communism is one of the key terms that needs to be defined, mostly since there is a

common way of understanding communism that is based mostly on the negative

impact of communism. In the academic world the most researched case study of

communism is the Soviet Union one, but all the communist regimes settled in various

East and Southeast European countries shared the same characteristics with the

Soviet communist regime. Nevertheless each country had its own peculiarities and

communism in them developed some special features, or did not undergo the same

stages as in Soviet Union, whose communism changed with the Khrushchev takeover.

That is the case of Albania which did not “betray” the Stalinist models and its latest

collapse, compared to other countries, demonstrates that one example of communist

study cannot be applied to all the communist regimes.

Various scholars define communism on the basis of several denominations that

are characteristic for totalitarian regimes. Fitzpatrick defined it in view of the role of the

leader. The leader and the party were to take decisions related to people as in the

case of determining to train technically the proletariat3.

Femia defines it in terms of the leading Marxist ideology. These two approaches

are linked so well that “it might be said that Marxism is the ideology and communism

the practice”4. Other scholars base their definition on the economic model and on

citizens’ rights. Notwithstanding people’s value in building the new socialist society,

their life was surveyed by the police forces. There were lots of purges in Soviet Union

8 Nëntori, 1980), 52-61.3 Sheila Fitzpatrick. “Stalin and the Making of New Elite” in The Cultural Front, (New York: CornellUniversity Press, 1992), 155.4 Joseph V. Femia, “Marxism and Communism” in Contemporary Political Ideologies, (London, NewYork: Continuum, 1999), 104.

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during communist regime and this was related to classes but mostly to people’s

functions5.

Another feature of communism was related to political pluralism. The previous

did not allow the latter, as a result there was only one party and that was directed by

the leader and the other members of the Politburo from where the principals of the

country came out.

As previously mentioned the state-party and the leader of the country played a

significant role in implementing controlled economy in the country during communism,

without forgetting the existence of the State Planning Commission that played

essential role in formulating and controlling the process of industrialization as one of

my interviewees asserted. I have focused my thesis in this perspective. This was

because all communist regimes established in Eastern and Southeast Europe were

characterized by controlled economy. The first step of this process was the change

from agricultural to industrial profile through collectivization, which led to high rates of

imprisonment of the rich farmers6.

In my thesis I use the concept of communism to refer to economic development

in terms of controlled economy, the role of the leader and the role of the state-party in

the development of economy. Therefore in accordance to my thesis I have defined

communism in terms of a totalitarian regime which is composed of several constituents

like the leader, the state-party, controlled economy, who act simultaneously but the

5 Sheila Fitzpatrick. “Stalin and the Making of New Elite” in The Cultural Front, (New York: CornellUniversity Press, 1992), 170-176.6 John L. Schreher & Michael Jakobson, Collectivization of Agriculture and the Soviet Prison CampSystem in Europe-Asia Studies, Vol. 45, issue 3, 1993, 533-535.

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primary role falls on the leader of the country and the state-party, who control the

socio-economic life.

The stages of the communist takeover have been and are still a discursive

focus. Hugh Seton Watson claims that the communist take-over took place in three

stages, namely: “a general coalition of left-wing against fascism; a bogus coalition in

which the communists neutralized those in other parties who were not willing to accept

communist supremacy and finally complete communist domination frequently

exercised in a new party formed by the fusion of communists and leftist groups”7.

During the first and the second stages the communists established enormous influence

through social organizations under their control, such as women’s and youth

associations, trade unions, professional bodies and Soviet friendship societies.

What is the case of Albania in this framework of communist takeover?

The first communist group was formed in Korça in 1929 but as a party it was founded

in 1941 and the main leader was Enver Hoxha, who later on would become even the

commander of the National Liberation Army in 1944, which liberated the country from

Nazi Germany8. The fact that the communists liberated Albania was the beginning of

the charismatic leadership of Enver Hoxha and the regime. The communists after they

seized the leadership of the country since the beginning and set up for the opposing of

the National Front (Balli Kombëtar) through their self-legitimization for having liberated

the country9.

7 R. J. Crampon, Eastern Europe in the Twentieth Century and After, Second Edition, (London and NewYork: Routledge, 1997), 211.8 James O’Donnell, A Coming of Age: Albania under Enver Hoxha, (New York, Columbia UniversityPress, 1999), 63.9 Christopher Cviic, Remaking the Balkans, (London: Pinter Publishers, c1991), 138.

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He formed the government where he was holding several posts in various

times. As the leader of the country, he embarked in assiduous campaigns to

modernize the country. These empirical examples testify that the Albanian communist

takeover underwent the same stages noticed from Watson.

Communist Model of Industrialization

The model type of communism is regarded the Soviet Union one. This type of

communism was also used for the construction of other communist regimes in

Southeastern Europe. As Albania came out of the war in very poor conditions it had to

rely on economic aid to overcome the difficulties moreover when the leadership

decided to revolutionize the economy aiming at the change of the profile of the country

from an agricultural into an industrial country. The leader of the country Enver Hoxha

declared that “We observe with pleasure that industrialization with quick rhythm is

approaching everyday the planned objective from the Party, the transformation of

Albania from an agricultural-industrial country into an industrial- agricultural one”10. But

which were the models of industrialization followed by the Albanian government?

At a time when Soviet Union was trying to spread communism, Enver Hoxha

accepted the Soviet assistance and decided to implement the same policies that Stalin

implemented to modernize Soviet Union. Consequently the same models were

implemented into two different countries in terms of economy and in terms of territorial

size.

10 Enver Hoxha, Raport në Kongresin e VII të PPSH (Report in the Seventh Congress of PPSH),(Tiranë: 8 Nëntori, 1976), 4.Enver Hoxha -“ Me kënaqësi konstatojmë tani se industrializimi me ritme të shpejta po e afron për ditëe më shumë objektivin e caktuar nga Partia, shndërrimin e Shqipërisë nga një vend bujqësoro-industrialnë një vend industrialo-bujqësor”.

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But it is interesting to study to which extent they were successful in Albania and

what they brought to Albania. In this perspective time plays an important role, as for

the period when these models of industrialization, which focused on the development

of heavy industry, were regarded as very much profitable and the same people who

voted it at that time have different opinions at the present. Two of my interviewees

confirmed in their interviews the mistake they did in copying all the Soviet Models of

industrialization, due to the ideological standpoint11.

Historiography about Soviet Communism

The nature of the communism regime has generated numerous scholarly debates. The

existing academic literature either blames communist regime for political purges or

concentrates on the leader cult. It is worth saying that there is a great variety of literary

works on communism in Soviet Union due to the fact it is regarded as the main pattern

of communism. When talking about the literature about Soviet type of communism in

the field of industrialization and Soviet communism is still an interesting topic of

research.

This is the focus of a recent book entitled “Stalin A New History.”12 To my

opinion, the book is dedicated to the role of Stalin in the entire communist era and the

process of industrialization, as he was the decision-taker for any policy that would lead

to the development of the country. The authors name all the chapters starting with

Stalin as… which demonstrates that Stalin was the first and final word in the decision-

making process. The volume “An Economic History of the USSR 1917-1991”13 offers a

11 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, TiranëJ.B. ex-Minister of Industry in Albania, interview by the author, April 25, 2007, transcript, Tiranë12 Sarah Davies & James Harris, Stalin A New History, (UK: Cambridge University Press, 2005).13 Alec Nove, An Economic History of the USSR 1917-1991, (London: Penguin Books, 1992).

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complete overview of the economic policies followed during communism for the

development of its economy, simultaneously focusing on the industrial development

and policies as well. Another book that concentrates on the industrialization of Soviet

Union is “Steeltown USSR, Soviet Society in the Gorbachev Era”14. This book covers

the urbanization area especially the creation the industrial town like Magnitogorks was

during Stalinism. It describes all its stages of creation and then the people employed in

the town industry. Other books describe the entire process of industrialization, the

stages, the means and the factors that led to the development of industry in Soviet

Union. This is what Alec Nove does in “The Soviet Economy, An Introduction”15 and

R.W. Davies does in the volume “The Economic Transformation of the Soviet Union

1913-1945”16. These two authors embark in explaining the economic development of

Soviet Union and also explaining all the influencing factors in this process and at the

same time comparing the industrial development of the country in several years.

Consequently all these sources and other attempt to explain the models of

industrialization and its stages as well.

Historiography about Albanian Communism

The communist regime in Albania is depicted as a gloomy one and there are few

bibliographical items about industrialization of Albania during communism. This is due

to the concentration of the scholars mainly in the side effects of the regime, such as

repression and the lack of rights focusing more on political history, rather than on

economic history. Recent political changes influenced the way communist history is

14 Stephen Kotkin, Steeltown USSR, Soviet Society in the Gorbachev Era, (Los Angeles, University ofCalifornia Press, 1991).15 Alec Nove, The Soviet Economy, An Introduction, (Washington: Frederick A. Praeger, 1961, 1965).16 W. Davies, Mark Harrison, S. G. Wheatcroft, The Economic Transformation of the Soviet Union1913-1945, (London: Cambridge University Press, 1994).

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depicted. The existing literature can thus be divided into two groups, the one written

during the regime and the other written after the collapse of communism. Works of the

post-holders during communism praise communism and its achievements, unlike the

post-communist works, which aim at not accepting the achievements of the communist

regime in Albania and address only on the negative effect of the regime.

These two groups of writing the Albanian history during communism are

chronologically delineated. Thus the works written during the regime and the other set

written after the collapse of communism after 1991. The first set of works, which

praises communism and its achievements is mainly represented by the works of Enver

Hoxha and his supporters, such as Ramiz Alia, Adil Çarçani and also writers such as

P. Geço, P. Pejo, V. Misja, A. Pano, V. Toçi, B. Bardhoshi, etc. All of them dedicated

their works to the party and its leader. Hoxha’s “Work I-66” praised the party and the

leader, and the role of the people as the main factors in developing Albanian industry.

Certainly he attributes most of the progress of the country during industrialization to the

state party but he never spares an opportunity to praise the people as well, which can

be regarded as a factor that created his cult in people’s vision.

The works of R. Alia, “Prona Socialiste shtohet me Punë, për Mbrojtjen e saj

është e interesuar e gjithë Shoqëria” (The Socialist Property grows through work; the

whole Society is interested in it)17 and A. Çarçani, “Pesëvjeçari i Shtatë-Etapë e re për

zbatimin e forcave tona” (The Seventh Five-Year-Plan - A new Stage for the

employment of our abilities)18 had a similar goal adding the aspect of giving directives

17 Ramiz Alia, Prona Socialiste shtohet me punë, për Mbrojtjen e saj është e Interesuar e GjithëShoqëria (The Socialist Property increases with Work, the entire Society is interested in its Protection),(Tiranë: Shtëpia Botuese “8 Nëntori”, 1981).18Adil Çarçani, Pesëvjeçari i Shtatë-etapë e re në Zbatimin e Forcave Tona (The Seventh Five-Year-New Stage in the Implementation of our Abilities), (Tiranë: Shtëpia Botuese: “8 Nëntori”, 1981).

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on the ways to industrial development. All this was due to the fact that these two

authors hold offices in the communist government of Albania. Books about industry

were written from the engineers of the period, who were regarded by the leader as the

main figures of the “Socialist Work”19. V. Misja in his book “Ekonomia e Industrisë në

RPSH” (The Economy of Industry in People’s Republic of Albania)20 pictures some of

the branches of industry during communism. It is a reliable source as he is an

economist who took part in the process of industrialization. Another group of

economists in the book: “Ndërtimet në Shqipërinë Socialiste” (Constructions in the

Socialist Albania) focus on the main constructions that Enver Hoxha’s government

decided to build in order to develop the country since “before the Liberation, Albania

was one of the most backward countries of Europe”21. Unlike the other previously

mentioned Pali Pejo “Lufta E PPSH për Ndërtimin e Bazës Ekonomike të Socializmit”

(The War of PPSH for the Construction of the Economic Basis of Socialism) matches

the economic transformation with politics. Thus he praises the party for the

construction for the socialist economy and he regards politics as the main source for

the development of industry. The Institute of Economic Studies of the Academy of

Science and the University of Tirana published a book on the state enterprises “Njohuri

për Ekonominë Socialiste” (Knowledge on the Socialist Economy). In this book the

anonymous group of authors provides an overview on the functioning mode of the

19 Ramiz Alia, Raporte e Fjalime 1986,(Reports and Speeches 1986), (Tiranë: 8 Nëntori, 1987), 38.20 V. Misja et al, “Ekonomia e industries në RPSH” (The Economy of Industry in People’s Republic ofAlbania), (Tiranë: Drejtoria e Botimeve të Universitetit të Tiranës, 1972).21 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste (Constructions in the Socialist Albania), (Tiranë:8 Nëntori, 1980), 21.

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enterprises and the structure of the enterprises, where they reveal the importance of

the state enterprises in the course of industrialization of Albania22.

One of the main issues and aims during industrialization in communist regimes

was the technical side. The Albanian government dedicated special attention to the

technical and material basis. Some aspects of this are analyzed in “Baza Materialo-

Teknike dhe Efektiviteti i Investimeve në Industri” (The Material-Technical Basis and

the Affectivity in Industry)23. V. Misja can be regarded as one of the most important

scholars during communism and his books about industry are a good source. A

relevant example is his “Krijimi dhe Zhvillimi i Industrisë në RPSH” (The Creation and

the Development of Industry in RPSH)24. In this volume he gives an account of some

of the branches of industry, the basis for the development of industry and supplies

some balances to see how industry developed during the years.

Another important issue for the Albanian government was the distribution of

industry in several zones of Albania in accordance to the natural resources. This is

clearly visible in “Ekonomia dhe Organizimi i Industrisë” (The Economy and the

Organization of Industry)25 published by a group of authors, who examine the regional

distribution of industrial branches, specifying the reasons for the distribution. Unlike the

other economists, T. Joanidhi and his colleges in “Planifikimi dhe Organizimi i

Ndërrmarjeve Socialiste” (The Planning and Organization of the Socialist

22 Instituti i Studimeve Ekonomike I Akademisë së Shkencave të RPSSH dhe Fakulteti i Ekonomisë sëUniversittetit të Tiranës, Njohuri për Ekonominë Socialiste, (Tiranë: 8 Nëntori, 1981).23 V. Misja, Baza Materialo-Teknike dhe Efektiviteti I Investimeve në Indsutri, (The Material-TechnicalBasis and the Affectivity in Industry )(Tiranë: Shtypshkronja e Re, 1983).24 Vladimir Misja, Krijimi dhe Zhvillimi i Industrisë në RPSH, (The Creation and the Development ofIndustry in RPSH), (Tiranë: Naim Frashëri, 1963).25 Grup Autorësh, Ekonomia dhe Organizimi i Industrisë, (The Economy and the Organization ofIndustry), (Tiranë: Shtypshkronja Revista Dispenca, 1973).

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Enterprises)26 try to shed light on the way the enterprises functioned and how much

they were influenced by the state-party or by the leader, but unfortunately he does not

bring much of a truth in it. Mainly the authors of the books about Albanian economy

had a rich background in economics and they were competent about what they were

doing and what was happening during the communist rule. Their works occupied a

considerable position during the regime, after it they are never mentioned but they are

regarded as the tools of the regime. Frankly speaking, what needs to be recognized, is

that these books are still a valuable source of revealing the constructions in the field of

industrialization.

The second historiographic trend was led by F. Lubonja, and R. Papa also

including some new politicians who entered politics after the communist collapse. Their

aim was to underestimate the achievements of the communist regime by showing only

its negative sides. This was attributable to the fact that Lubonja’s father was

persecuted and later executed by Enver Hoxha. Consequently, the articles written by

him in “Përpjekja” (Endeavor) are biased. Lubonja has always written against the

communist regime and he still continues to write, especially about the persecuted and

the purges committed during communism. In one of his articles in “Përpjekja” he states

that “There is no doubt that the history of communist regimes even in countries like

ours, where they were the most wild, it is not possible that there is no history of

counter-communism”27. The other article of Lubonja against communism is based on

the religious toleration during communism28, and he stresses one more time, what is

26 T. Joanidhi, P. Ballano, A. Baçka, Planifikimi dhe Organizimi i Ndërrmarjeve Socialiste, (The Planningand the Organization of the Socialist Enterprises) N.I.SH, (Mihal Duri, Tiranë 1967).27 Fatos Lubonja, “Mbi Krimet e Komunizmit” (On the Crimes of Communism) in Përpjeka (Endeavor),January 19, 2007.28 Fatos Lubonja, “A Majfton Miti i ‘Tolerancës Fetare’” (Is it enough the ‘Myth of Religious Toleration’” in

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commonly known that religion was abolished during communism. In his articles

Lubonja concentrates on picking up the negative sides of communism and never

mentions anything about the positive sides, as the reconstruction of economy in this

era.

Whereas R. Papa, started conducting his program called “Focus from Robert

Papa” where he aimed at displaying all the negative sides of communism aiming at

underestimating the figure of Enver Hoxha. Papa was one of the first to commence its

attack against the figure of Hoxha, and also to reflect the difficulties of the first years of

transition of Albania29, sometimes even panicking the people and offending the

families of the previous government’s members by showing on TV the destruction of

the busts and figures of their dearest people.

Unlike the previous people the new politicians aimed at consolidating their

regime and moreover self-legitimizing themselves as the saviors of the country from

the communist oppression.

Other newspapers that would reveal just the negative impact of communism are

the regional newspapers “Klan”, “Dukagjini” and “Metropol” as well published after the

collapse of communism, where their staff depicts the negative view of communism and

of the Albanian leadership. Thus the main-editor of Dukagjini newspaper wrote for Klan

newspaper and article about communism, which reveals the collaboration of these two

newspapers aiming at revealing the crimes of communism.

Lobi, March 31, 2007.29 Robert Papa, “Focus nga Robert Papa”, (Focus by Robert Papa), 1991-2007.

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In the article, “Komunizmi Drapëri i Parë” (Communism the First Sickle)30 Prelë Milani

poses the question if Albanians would have had any better regime after the war, and

compares communism to prohibition, as they both function in practice.

Surely there are aspects of the regime that can be disputed and the

consequences of the regime as well. The purges and the other negative effects like

collectivization led to the negative impression of this regime in Albania but for the time

they did not appear alike and moreover because there was the lack of human rights

and nobody could raise the voice to contradict the regime.

There are numerous attempts by scholars to explain this process, but they

cannot be regarded as reliable due to the biased testimonies and the literature they

employ. This is attributed to the fact that they are written by people who have suffered

under communism either by being persecuted or by having a family person labeled as

enemy of the party, the state and the people, and imprisoned. These attempts are

much more visible in the European historiography about Albanian communism.

Besides this, European historiography owns a narrow literature about Albania in

general, and about the period of communism, in particular. As for the Western

historiography on Albania, most of the published works are superficial and based on

prejudiced testimony, such as the work of Emil Ginar, a French diplomat, “Shqipëria-

Historia 1966-1968” (Albania- History 1966-1968)31, who concentrates in a short span

of time in a superficial way as he does not get engaged in understanding the Albanian

communist policy.

30 Prelë Milani, “Komunizmi Drapëri i Parë” (Communism the First Sickle) in Klan, March 3, 2007.31 Emil Ginar, Shqipëria-Historia 1966-1968 (Albania- History 1966-1968), (Tiranë: Naim Frashëri,1992).

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Edith Durham in “Histori e Letrarizuar Balkanike” (Literary Balkan History)32,

sees the Albanian history in a literary way and unfortunately escapes the real historical

focus. Whereas Nikolas J. Costa “Albania: A European Enigma”33 bases his book on

the stories told by his grandfather and just one testimony is never enough to write

history. Therefore only a small number of Western scholars like Christopher Cviic,

Derek Hall and Edwin E. Jacques attempt to understand Albanian history from within,

but they are often too general. Moreover, they base their books on testimonies of

people who were affected badly from communism.

Consequently having various kinds of sources, whose use can be limited in

terms of judgement on communism, reveals the necessity of analyzing them in various

methods.

32 Edith Durham, Histori e Letrarizuar Balkanike (Literary Balkan History), (Tiranë: Naim Frashëri, 1995).33 Nikolas J. Costa, Albania: A European Enigma, (Boulder: East European Monographs, 1995).

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11..22.. SSoommee MMeetthhooddoollooggiiccaall CCoonnssiiddeerraattiioonnss

My aim for this thesis is to understand how the models of industrialization were

implemented. The transportation of the models from Soviet Union to Albania could not

have the same outcome. Thus the degree of success in both the two countries and to

which degree the role of the leader and of the state – party effected the process of

industrialization in both countries are academically interesting and are the focus of my

thesis.

I employed the comparative methods to observe the transportation of models

from one country to another focusing in the achievements of the two governments in

terms of industry. This is the reason I concentrated on various kinds of sources,

primary and secondary as well. The primary sources I utilized were oral history,

statistical data in various enterprises or in the municipality of Elbasan and unpublished

archival sources. The secondary sources I made use of were the literature in English

and Albanian and simultaneously the newspaper articles from the communist era.

The challenge remains in the examination of each of the types of sources. The

idea of “objective knowledge of the past” was revealed previously by Ranke in 1824

who emphasized the role of intelligence and general historical knowledge in examining

sources.34 Stanford agues that objective is about the object and subjective about the

subject, pointing out that objective knowledge about an event in the past is possible

only through the subjective experience of the historian.35 This is what I am at in writing

my thesis.

Standford emphasizes that objectivity can be achieved making use of facts and

truth apart from objectivity. In accordance to Stanford a historical fact accords with a

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judgment about the past in which historians agree. He states clearly “Facts are what

statements state and not what they are about”.36 Then he continues with his concept

about truth. For him the concept of historical truth is related to two points. First – he

regards truth as a property of a statement and secondly he regards truth as a goal,

something that the scholarly discipline aims at. It is true if my secondary knowledge

agrees with my primary knowledge. In reality this can be achieved through the means

of primary sources. Thus the interviews, statistical data and archival sources I

collected shed light on reality. The archival sources were relevant in terms of decisions

taken as far as legislation is concerned but simultaneously in terms of the plans

appointed to various industrial enterprises. I interviewed authorities of the communist

era, such as Mr. Ramiz Alia, Ministers of Industry and various directors of the main

enterprises or plants in Elbasan. These interviews especially the one of Mr. Alia

clarified various questions related to the Albanian-Soviet beginnings of collaboration to

the end. The industrialization project and the decision-making were part of the

interview with Mr. Alia and the Minister of Industry. Mr. Alia went further in explaining

the pros and cons of the industrialization of Albania and the mistakes made due to the

copy they committed to the Soviet Models. The directors of the main state-enterprises

and the Metallurgical Plant directors shed light on the structure and the administrative

organization of the work. Portelli claims: “Oral history has become a dialogic discourse

created not only by what the interviewees say, but also by what as we historians do- by

the historians presence in the field, and by historian’s presentation of the material.”37

34 Michael Stanford, A Companion to the Study of History, (Oxford: Blackwell, 1996), 122-130.35 Ibid.36 Michael Stanford, A Companion to the Study of History, (Oxford: Blackwell, 1996), 129.37 Alessandro Portelli “Oral History as Genre” in The Death of Luigi Trastulli and other Stories-Form andMeaning in Oral History, (Albany: State University of New York Press), 1991, 3.

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This is true to some extent as the historian has to interpret the interviews and to make

use of it according to his/her aims.

Furthermore I have focused on local level as well, with the case study of

Elbasan, writing thus microhistory. Giovanni Levi states that, “microhistory is based on

the reduction of the scale of observation, on a microscopic analysis and an intensive

study of the documentary material”38. Thus focusing in one city which underwent a

total transformation during communism was easy in terms of the smaller scale of

materials to be examined but all together difficult as the documents required intensive

study especially their interpretation.

The secondary sources for me were mainly books and articles of newspapers

and journals that supplied information about the work already done in the field of

economic history in terms of revealing the constructions during communism. Mainly the

books I went through served as a guide on what to further on conduct research or

explore in primary sources. As far as books about Soviet Union, I concentrated on

exploring the models of industrialization and the ways they were implemented.

Whereas in the books about the Albanian case I focused on the constructions, the

branches of industry that the Albanian leaders decided to develop. They were a good

source concerning the data as well, especially the congress volumes and the works of

the leader. The data supplied in these books conformed to the data I discovered in the

archives as well.

After having pictured the two cases I employed comparative study in order to

sort out the methods that Albania copied, the way they were implemented in Albania in

38 Giovanni Levi, “On Microhistory”, in Peter Burke, New Perspective on Historical Writing,(Pennsylvania: University Park, 1991), 95.

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comparison to Soviet Union, the extent to which they were put into practice but

moreover how much Albania profited from these models of industrialization.

Consequently I came up with the models of industrialization employed in Soviet Union,

which later on would be transported in Albania.

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11..33.. SSoovviieett MMooddeellss ooff IInndduussttrriiaalliizzaattiioonn iinn SSoovviieett UUnniioonn

The end of World War II established in the world the hegemony of the

superpowers. This divided the world into two parts, the Soviet domination precinct and

the British-American domination zone. One specific regime was established in

accordance to the dominators’ one. Consequently Soviet Union instituted the

communist regime, which later on was spread in the respective zone creating the

communist block where countries such as Albania joined. The communist regime had

its own principles and as such particular policies were implemented in accordance to

the principles of the regime. The policies applied included the economic sphere as

well. I will explore which were the characteristics of the economic policies implemented

in Soviet Union or as we can call it, the Soviet Union Model of Industrialization.

Furthermore which were the factors of the Soviet Union economic development.

The economic circumstances of Russia in 1913 still remained the least

industrially developed of the great powers. Its industry was responsible only for “21 per

cent of net national income. This included 15 per cent from large-scale industry, which

employed a mere 4 per cent of the labor force”39.

By the course of years the situation was becoming worse, as such Alec Nove

confirms that with the fuel crisis causing the closure of many state-operated factories

1921 was a nightmare year for people and the government. Towards the end of the

year in 1922 there emerged a nightmare of a different kind. The leadership decided

that the time had come to abandon the system under which state-industry had been

operating.

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The result was a monstrous growth of bureaucratic tangle, an unworkable

degree of centralization (glavkism), waste and inefficiency. It was found necessary to

close many enterprises because there was no fuel and no materials. While desperate

efforts were made to restore rail transport and the fuel industries and by the end of

1922 substantial progress had been made in that direction-the opportunity was made

to rebuild state industry on a new commercial basis to shed surplus staff and to compel

more efficient operation by making management pay its way. Consequently wages

paid in cash, rationing abolished in 1921, state industry was operated on economic or

commercial accounting, materials and fuel had to be bought, the need of a stable

currency was evident. As a result to enable industry to operate in this way it was

necessary to divide it into autonomous units, in stead of treating it as if it were part of

one great firm of which VSNKH was the board of directors40. As such there is evident

need for the development of the country. Moreover in the state of a greater country,

Soviet Union.

Consequently as a totalitarian regime the one instituted in Soviet Union, the

common characteristic is the role of the leader. A country can never progress or

regress without its leaders and Soviet Union awes its progress to Lenin and Stalin,

meaning that the leader is one of the factors that influenced in the economic

transformation of Soviet Union. Lenin was born in 1870 and Stalin was born in 1879

and they both grew up being witnesses of the industrial developments of Western

European heartland as Ruhr and the United States, where the miracles of the modern

39 R.W. Davies, The Economic Transformation of the Soviet Union 1913-19945, (London: CambridgeUniversity Press, 1994), 131.40 Alec Nove, An Economic History of the USSR 1917-1991, (London: Penguin Books, 1992), 82-91.

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technology were emerging such as the ones from Buffalo to Chicago.41 In the 1900

these western countries and civilizations were the most industrialized ones and they

were considered to be progressive for the backward Soviet Union, as a result they

became the “viable models”42 for it. Consequently the Russian leader decided to

implement some policies for its development. Moreover when the science revolution

had occurred and was in continuum.

Thus according to Daniel Chirot, the years from 1780 until 1970 were

considered to be the years of revolutions in science and each of these revolutions took

place in a Western European country, leading to the development of those countries

starting with the cotton-textile age dominated by Great Britain in 1780 and ending up

with the age of electronics dominated by Western European countries and Japan

replacing USA. Chirot considers the development of technology and science as divided

into five stages and each of these stages was dominated by one western country or

USA. As previously stated the first period is characterized by the domination of Great

Britain with the cotton-textile age from 1780s until 1830s. The second stage is

dominated by Britain again and it is the iron and rail age starting from 1830s until the

1840s.

The third stage was considered to be the age of steel and organic chemistry

until World War I and the American and German economies were the best examples.

Whereas the fourth stage is dominated by the American hegemonic economy and it is

considered as the age of automobiles and petrochemicals and it started in 1910s until

41 Daniel Chirot, “What Happened in Eastern Europe in 1989?” in Vladimir Tism neanu, ed., TheRevolutions of 1989. (London: Routledge, 1999), 22.42 Ibid.

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1970s. The fifth stage is the age of electronics and biotechnology starting from 1970s

and continuing in the next century when Japan and other Western European countries

are replacing the United States of America in this time span.

It is the third stage that was more important to be taken into account for the

Soviet leaders thus the period of the use of steel mills, huge electric generating plants,

and chemicals became the goal of the Soviet leaders. This model of industry used by

the Soviet leaders is being referred as the Stalinist-Leninist Model and it was mainly

based in the third age of industrialization, as it could not afford the fourth age of world

industrialization or other ages of science revolution43.

Nevertheless the adaptability of the models was to be discussed, the

government revealed to the population that there was no use to spoil consumers but to

create an economy that was equal to the US economy and that was reached by the

steel mill and power generating plants44. Consequently what Soviet Union turned to be

in the period of communist regime, was a country dedicating the majority of attention to

the development of heavy industry, building as many factories as possible and having

a qualified staff to work with the new technology. Especially it paid special attention the

industry of steel and other metals, but at the same time the Soviet Union did not leave

aside the chemical industry. These were some of the models that Soviet Union

observed in west and wanted to implement.

Each country has it own peculiarities as such the models that Soviet leaders

wanted to implement had to be adapted for the Soviet society. Thus various factors

43 Daniel Chirot, “What Happened in Eastern Europe in 1989?” in Vladimir Tism neanu, ed., TheRevolutions of 1989. (London: Routledge, 1999), 22.

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acted for this reason. The agents were the regime in itself, from which it generates the

role of the leader, the role of the party and the economic policies.

The communist regime was characterized from centralized economy and

controlled from VSNKH (All Russian Congress of People’s Commissars)45 as Nove

argues in his book. Nationalization of economy was evident but in reality there was a

peculiarity that is not very common in other communist regimes, the trusts. Despite

their existence the trusts were subordinate to VSNKH via its local organs (Promburo)

and the others to local sovnarkhozy (councils of national economy).46 The state party

and the leader of Soviet Union had specified this process and reflected it even in the

constitution. Thus the according to a resolution of 29 July 1922 VSNKH operated its

control over industry by:

1. Methods of an economy character: the financing ofindustry, the organization of the industrial credit, pricepolicy etc.47

2. Methods of an administrative character: appointment anddismissal of responsible officials of trusts and othertrading-and-industrial units, the transfer of materialresources from one branch of industry to another, fromenterprise to enterprise, and so forth, in conformity withthe industrial plan.48

3. Methods of production-planning character: the drafting ofproduction and disposal plans, inspection and checking ontheir execution ensuring the conformity of the industrialplan with the general plan.49

It is clearly visible the attention that the government dedicated to the industrialization of

the country, making it be prior in their resolution.

44 R.W. Davies, The Economic Transformation of the Soviet Union 1913-19945, (London: CambridgeUniversity Press, 1994), 131.45 Alec Nove, An Economic History of the USSR 1917-1991, (London: Penguin Books), 1992, 91.46 Ibid. 92.47 Ibid.48 Alec Nove, An Economic History of the USSR 1917-1991, (London: Penguin Books), 1992, 93.49 Ibid. 91.

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The result of the first attempts was quick. Therefore the years 1928-1929

proved to be very successful in industry. The first five- year plan was began to be

implemented in 1929, revealing one of the means that led to the completion of the

industrialization process. The effects of the first plan were according to Nove the

following ones:

Aggregates were liable on the inflation. Machinerydeveloped. Handicrafts, small workshops were doomed todecline. Rapid urbanization tended to increase the inmeasurable output much greater than any real increase ofconsumers’ welfare. Expansion and modernization of citieslike Volga, Urals, Kuzbas became possible because ofmetallurgy and steel works.50

Whereas Stephen Kotkin argues that Magnitogorsk worked and produced more

steel that Canada and Czechoslovakia and quite equally to Great Britain during

Gorbachev era51. The metallurgical complex dominated the life of the city housing to

hundred thousand people eighty five children’s institutions, several hospitals, a number

of nearby resort complexes52. The construction of the industrial city was the other

characteristic of the communist rule and decision-making.

Soviet Union in 1970 had the best technology and it even started to produce as

much steel as possible and thus it became a copy of the United States of America as

Daniel Chirot claims in his essay. Blackwell stated that the state-planned industry

introduced by Lenin was to be applied due to two reasons as he claimed. The first

reason was because he did not want that the Soviet industry could risk its sovereignty

and become a market for the western countries and the second reason was because

50 Ibid. 189.51 Stephen Kotkin, Steeltown USSR, Soviet Society in the Gorbachev Era, (Los Angeles, University ofCalifornia Press, 1991), 1.52 Stephen Kotkin, Steeltown USSR, Soviet Society in the Gorbachev Era, (Los Angeles, University ofCalifornia Press, 1991), 1.

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he believed that if the industry was the monopoly of the state then it would “provide a

safeguard against any attempts at foreign encroachment”53 a reason that was claimed

by the other developing countries during communism.

Davies socialism was defined as the social ownership of the means of

production and state ownership was assumed to be the most advanced form of social

ownership54. As such the most common form of enterprises were the state owned

ones. Alec Nove classifies the enterprises into three groups; state enterprises, non-

agricultural co-operative enterprises and collective farms (kolkhozy)55. Simultaneously

the private sector continued to exist and it was categorized as agricultural holdings of

collective farmers and state employees and private craftsmen, individual peasants,

professional services56. But in reality as far as the industrial output is concerned the

enterprises would be ranked as the chart supplies.

1928 1937 1950 1958state enterprises 69.4 91.8 92 94co-operativeenterprises

13 8.2 8 6

private 17.6 0 0 0

Table 1: Gross Industrial output by forms of ownership (Per cent of total)57

Regarding the definition about the state enterprise we can observe that it

generates some consequences and responsibilities of the state. A state enterprise

belongs to the state. As a result in essence and in law the enterprise is a convenient

unit for the administration of state property. Thus there is again the ruling of the leader

53 William L. Blackwell, Russian Economic Development from Peter the Great to Stalin, New York: NewViewpoints, 1974, 224.54 R. W. Davies, Mark Harrison, S. G. Wheatcroft “Industry under central planning 1929-1941” in TheEconomic Transformation of the Soviet Union 1913-1945, (London: Cambridge University Press, 1994),136.55 Alec Nove, The Soviet Economy, An Introduction, (Washington: Frederick A. Praeger, 1961, 1965),27.

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as the conclusion that comes out of Davies book, where Stalin had all the

responsibilities and simultaneously the decision-making as well. We Stalin in her book

as economist, as politicians and in various other positions, each of these positions

constitutes a chapter of the book named all Stalin as... 58

The role of the leader was evident in the commended structure of the enterprises.

Hence the structure consisted of the director and his senior also the chief engineer

who acted as his deputy and the chief accountant are appointed by the state organs to

manage the state’s assets for purposes determined by the state59. The primary task of

the director is to fulfill and if possible to overfill the output plans and to utilize the

resources placed at his disposal with due regard to economy. The output plan

specified the quantity of the product required in the given month, quarter or year with

some details of type, design, assortment, and etc where this is relevant. The aggregate

output plan of industrial enterprises was frequently expressed in physical measure

(tons, square meters) or where it cannot be done in terms of value (roubles of gross

output). In these terms the role of the leader is pretty strongly expressed in

commanded economy60.

The ideology was always present in the entire process of industrialization. As

such the development of industry was part of the strategy of constructing socialism in a

56 Alec Nove, The Soviet Economy, An Introduction, (Washington: Frederick A. Praeger, 1961, 1965),27.57 Ibid.58 Sarah Davies & James Harris, Stalin A New History, (UK: Cambridge University Press, 2005).59 Alec Nove, The Soviet Economy, An Introduction, (Washington: Frederick A. Praeger, 1961, 1965),30-31.60 Ibid.

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single country, which was surrounded by a hostile capitalist world61. This is the

hypnotizing part of the communist leaders. The other characteristic of the communist

leaders in the world was the exposing of the achievements of their government.

Consequently Stalin declared that:

…we have caught up and overtaken the capitalist countries ina political aspect. Now we must use the dictatorship of theproletariat… in order to catch up and overtake the advancedcapitalist countries economically as well.62

The plans were the other aspect to be asserted in public from the leader of the country

or the Politburo members. Within the framework of “socialization” or statization, the

protagonists of industrialization in the Politburo, and in the party at large, were by 1928

in general agreement on their more specific industrial objectives. Davies summarized

them under 5 main heads:

1. The Soviet Union must overtake the advanced capitalistcountries in industrial output per head of population asrapidly as possible. The soviet industry must become self-sufficient as soon as possible, in the sense that it shouldnot depend on the capitalist world for any major type ofproduct

2. Soviet industry must overtake the west technically as wellas economically. This required the construction of newadvanced enterprises, and these would be capitalintensive, even though there was and abundance ofskilled labor in the Soviet Union

3. The output of capital goods would increase more rapidlythan that of consumer goods, with the concentration ofresources on “means of production for producing meansof production” on the industries producing machine toolsand industrial equipment.

4. The consumer goods industry (together with agriculture)would nevertheless expand rapidly so that the standard ofliving of the population would rise substantially

5. Location policy would be based on long-term needs ratherthan on short-term costs. A major part of industry wouldbe located away from the old centers of industrialproduction. Iron and steel and the major engineering

61 R. W. Davies, Mark Harrison, S. G. Wheatcroft “Industry under central planning 1929-1941” in TheEconomic Transformation of the Soviet Union 1913-1945, (London: Cambridge University Press, 1994),13662 Ibid.

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industries must be developed far from the frontier in theUrals and Siberia for defense reasons; modern industrymust be established in Central Asia and otherunderdeveloped areas in order to pull up their economy63.

These principles were embodied in the long-term annual or quarterly national-

economic plans. Most prominent were the three five-year plans: 1928-1933, 1933-

1937, and 1938-1942.

Conclusions:

Soviet Union, the country who became the example of Albania as far as economic

transformation was a country that mainly attempted to make use of some western

models of industrialization, due to the ambitions of its leaders. It is pretty true what

Dodge states:

The USSR produced the world’s first example of rapid,centrally planned and directed economic development.64

That is the case of Albania which in reality attempting to industrialize the country, the

leaders followed the Soviet example but with the slight difference that the Albanians

were offered some more help from the Soviet state, compared to the help supplied to

Soviet Union from USA. The economic circumstances of Soviet Union became the

first stimuli that made the leaders to react for the transformation of its economy.

The general example of Soviet Models based on controlled economy mainly

controlled from the leader of the country, the industrialization urge, the ideological

sphere and the means through which industrialization was achieved such as

63 R. W. Davies, Mark Harrison, S. G. Wheatcroft “Industry under central planning 1929-1941” in TheEconomic Transformation of the Soviet Union 1913-1945, (London: Cambridge University Press, 1994),136.64 Norton Dodge & Charles K. Wilber “The Relevance of Soviet Industrial Experience for LessDeveloped Economies”, in Soviet Studies Journal, Vol. 21, No. 3, January 1970, 336.

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collectivization, statization and the five-year plans led to the achievement of the

government in a pretty short period of time. These models will be transported as well.

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CChhaapptteerr 22:: IInndduussttrriiaalliizzaattiioonn ooff AAllbbaanniiaa dduurriinngg CCoommmmuunniissmm

Considering the economic circumstances of Albania before the communist

takeover would serve for a comparison of the two cases, in order to sort out the

outcome of the communist regime in terms of industrialization. That is what I have

done in the two first sub-chapters contrasting the two periods of Albanian history in

terms of economic development. Thus in this chapter I have dealt with the

industrialization level of Albania. I have divided it into five sub-chapters aiming at giving

a complete picture of the communist regime outcome. Thus the first sub-chapter is

related to the interwar period of Albania focusing on industry. A picture of this period

would supply food for comparison and also the beginning for the next sub-chapter,

which deals with the transformation of Albania during the communist regime. The

plans, the ideological line and the role of the leader in decision-making is its focus as

well. The third sub-chapter is concerned with the means used to industrialize the

country during communism, followed from the fourth sub-chapter which includes the

stages of industrialization and the main works in this field. As a totalitarian regime, the

government had taken precautions about every aspect of life, especially the one

related to the work. The political reflection of the industrialization project and the legal

part compose the fifth sub-chapter, stressing the fact that every aspect was controlled

and that no place for sabotage or misinterpretation was left.

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22..11.. TThhee EEccoonnoommiicc CCiirrccuummssttaanncceess ooff AAllbbaanniiaa bbeeffoorree tthhee CCoommmmuunniisstt TTaakkeeoovveerr“Please give me something, may God give youhealth…Come on, May God Give You!But the beggar knows what “May God give You”: Itmeans never to have anything, never to eat. Thus heknocks on the door with more strength. This time thevoice from within is harsher:Come on! May God Give You! Do you comprehend?The beggar is forced to comprehend. He leaves thatdoor, approaches the second, the third, the forth andso on of all the doors of that street. This street is hissalvation for today. Tomorrow it will be another one.The beggar knocks on each door, somewhere theygive him something, somewhere the lady of the homesays: “I vow I have nothing today”-and the beggar thistime is gentle, leaves remembering that home to returnsomeday. But “May God Give You” he cannot endure,does not want to listen. He knows pretty well what “MayGod Give You” means…”65

The upper abstract reveals the conditions of life in Albania during the intewar

Kingdom of Albania, but which continued during the belligerent period as well. The

Albanian society was socially stratified and the number that constituted the poor

stratum was incomparably larger to the wealthy ones. This passage is one of the many

moments of a beggar’s living, who represents the others as well in Shkodra, one of the

main cities of Albania, which is regarded as the cradle of national culture together with

Elbasan. The case of Shkodra is not the only where beggars attempted to live under

65 Migjeni “Zoti të Dhashtë” (May God Give You”, 1938. (Migjeni is regarded as the poet of poverty as hewas concerned with the economic circumstances of simple people living in Albania.)Migjeni: Më fal ndoj send, të dhashtë Zoti shëndet… - Hajt! Zoti të dhashtë! Por lypësi e di se ç’domethanë "Zoti të dhashtë": Mos me pas kurr, mos me ngran kurr. Prandej me ma tepër fuqi i bie derës. E tash permrenda asht zani ma i rreptë: - Hajt more! Zoti të dhashtë! A merr vesht? Lypsi doemos i duhet me marrë vesht. E len atë derë, msyn të dytën, të tretën, të katërtën, e kështu me rradhë, të gjitha dyert e asaj rruge. Kjo rrugë sot për sot asht fusha e shpëtimit të tij. Nesër asht ndoj rrugë tjetër. E lypsit, që troket nga dera në derë, diku ia falin ndoj send, diku i thotë e zoja e shtëpisë: "s'kam besa" - dhe lypsi atëherë asht i butë, shkon tue mbajt mend këtë derë, me ardhë ndoj ditë tjetër. Por at "Zoti të dhashtë" lypsi s'e duron; s'don ta dëgjojë. Ai e din mirfilli se c'do me thanë "Zoti të dhashtë".

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the mercy of the wealthy. Literary critics admit that the poems of Migjeni will always be

actual in any regime.

Albania experienced all the existing regimes, including absolutism. Thus during

the period of Kingdom of Albania, 1928-1939, the king decided to take various actions

for the improvement of the economic circumstances of Albania. What needs emphasis

when considering the case of Albania during the reign of King Zog is the fact that

Albania was an agricultural country and industry was at low level, but thanks to his

dedication to industry somehow it developed. The weak points, which influenced in the

Albanian industrialization, were the protection of the beys as he was part of this class,

the importance paid to Italy, as he had to rely on the help of Mussolini for the progress

of Albania and the Depression years.

The remainings of feudalism were very obvious during the beginning of his

reign. They lingered in the villages and they were the main cause of stopping the

industrial development of Albania. The majority of the land was owned by a small

group of landowners, whereas 72 per cent of the farmers were landless. The majority

of the castles were owned by them as well, but with the progression of the time

feudalism was falling and the bourgeoisie class was growing. Attributable to the focus

of King Zog and his government, there was a delay in factory building, as a result there

were only 300 small factories in Albania in 1938 and they were mainly dependent on

agricultural products66.

By reason of the inheritance of the poorest country in the Balkans, Zog had to face

obstacles to lead the Albanian industrialization and the first problem was the lack of

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funds to afford the progress of Albania. Consequently the first solution was loaning

some capital. As a result King Zog followed the open door policy towards USA and

Italy but Italy became the best source of funds, which led to the widespread Italian

influence in Albania67. There were “75 per cent of the existing industrial enterprises in

1938 in Albania, which had Italian capital and 22 per cent of mixed capital but just 1.8

per cent had bourgeoisie’s capital. For this reason the Italian capital became the owner

of Albanian National Economy”68. The outcome of having foreign investment in

Albania did not have only a negative impact that was the dominance of Italian assets

and the control of Albanian industry by the Italian government. It served as a push

forward to the progress of industry, but at the same time even affecting the direction of

the profile of industry, it made the Albanian industry one-sided and impeded the

development of Albanian national industry.

The Italian government decided to control in details the exploitation of its funds

in Albania; therefore they created SVEA (Società Per lo Sviluppo Economico dell’

Albania- Society for the Development of Albania) as Italy granted 70 million golden

francs for a 7.5 per cent annual interest69. SVEA required to be in command of the way

the loan was spent and it created a strategy of how to make use of the loan.

According to SVEA, traveling was very important and as such it decided to

spend more funds on roads, and bridges, which were not built in line with the Albanian

66 Pali Pejo, Lufta e Partisë së Punës të Shqipërisë për Ndërtimin e Bazës Ekonomike të Socializmit(The Struggle of the Albanian Labour Party for the Construction of Economic Basis of Socialism),(Tiranë: 8 Nëntori, 1974), 4.67 Miranda Vickers, The Albanians, A Modern History, (London: I. B. Tauris & Co Ltd, 1995), 25-45.68 Pali Pejo, Lufta e Partisë së Punës të Shqipërisë për Ndërtimin e Bazës Ekonomike të Socializmit(The Struggle of the Albanian Labour Party for the Construction of Economic Basis of Socialism),(Tiranë: 8 Nëntori, 1974), 6.69 Stefanaq Pollo, Arben Puto, The History of Albania from its Origins to the Present Day, (Tiranë: Ndërrmarja e Librit, 1981), 180.

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needs. A detailed plan of exploiting the funds formulated by SVEA is reflected in this

table70:

Estimatedexpenditure

Actualexpenditure

Road building 14800000 15272604Bridges 11265000 8771857Railroads (Durrës-Tiranë) 2300000 3025755Harbor work 8880000 7935727Public buildings 6735000 9613737Agriculture and landreclamation

5000000 1613737

Posts and telegraphs 485000 ---------Surveys 535000 954683Totals 50000000 47188100 ²³

Table 2: Investments of SVEA in Albania

As seen from this table the total sum does not correspond to the entire sum of loan but

there were never data on what happened to the other part of the loan.

The Albanian government did not take into account the fact that it would have

been really difficult for them to pay the debts and thus they continued to get loans from

the Italian government. The result of this was that “Italians took concessions in

Albanian industrial plants such as the one of oil, the brewery in Korça, cigarettes in

Durrës”71. As a result, within two years Italy succeeded in gaining control on the

Albanian economy72.

The Industrial Development under Zog’s regime was one of the most essential

issues for he made Albania go into deep debt and, as if this was not enough, it had to

overcome even the period of Depression 1929-1935. This would affect negatively the

Albanian fragile industry. Exports and revenues fell sharply. Industry was equally badly

shaped, small factories for the processing of agricultural products, “in 1938-accounted

70 Bernd Jürgen Fischer, King Zog and the Struggle for Stability in Albania, (New York: Columbia University Press, 1984), 153.71 Eugene K. Keefe, et al, Albania, a Country Study, (Washington DC: Library of Congress, 1994), 24-49.72 Nicolas J. Costa, Albania: A European Enigma, (New York: Columbia University Press, 1995), 120.

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only 9.8 per cent of hydroelectric power. The per capita product was the lowest in

Europe”73. After 1935 economic indices showed substantial improvement, due to

Italian loans74. In fact the two sides of this regime are to be considered. Thus Zog was

the first ruler who started to develop Albania through the implementation of a range of

policies. He gave importance to road building, industry and left aside agriculture.

Road building became the target of the Zogist government and at the same time the

majority of the funds were used for this purpose. This process started when Zog was

the President of Albania and it further extended during his reign as the King of

Albanians. As a result, Zog as President put roads at the top of Albania’s needs. His

government added some more miles of new roads75. While during his presidency he

was the one to give the final word on decision-making. This was not the case anymore

during his kingdom, because the Italian government had taken all the power from him

due to the Italian economic aid and then to the impossibility of paying the debts to

Mussolini.

Industrialization turned out to be the main objective of Zogist government.

Consequently Zog started a campaign of industrialization and the results were to be

praised. By “1922 there were 85 industrial units, foreign trade doubled between 1922-

1924 and the development continued until 1925 and 1928”. National currency, lek,

began to be issued though the national accounts continued to be reckoned in gold

francs. The negative side of this project was the prevention of urbanization but this was

not the case in post war policies. An achievement of Zog was the changing of his

perspectives of governing Albania. He stopped prioritizing the “northern clans” and he

73 Ramadan Marmullaku, Albania and the Albanians, (London: C. Hurst & Company, 1975), 35-40.74Tom Winnifrith Perspectives on Albania, (London:Macmillan 1992), 115-137.

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made them, pay taxes as all the other Albanian citizens, which was regarded as a

huge achievement76. The taxes he gathered were to be put under the disposition of

industrialization and Zog chose to develop quite all the branches of industry. As a

result he evaluated the natural resources and he started factory building policy in

accordance to the natural resources existing in several cities of Albania. Thus he built

a modern beer factory in Korça, a cement factory in Shkodër in 1929 and numerous

electric plants in various cities including Elbasan, which was fully electrified in 1934.

Edwin E. Jacques argues in his book that one of the testimonies of this last event

claims that they would “never forget the screams of delight rising and falling all over

the city of Elbasan as the electric street lights were turned on and off while being

tested for the first time one evening in 1934”77. All this was due to the hydropower

stations, which grew to be the other goal of Zogist government, and the first one was

built in 1936 in Vithkuq on the outskirts of Korça with the capacity of 500 kW-hours.

The mistake of the Zogist government was the non- development of mines. Mining

never developed and there was no effort in exploring and exploiting some minerals,

though the Albanian soil was rich of soft coal and bauxite, salt, limestone, high grade

copper ore, low grade iron ore, asbestos and asphalt. The same happened, but with a

slight difference, with Fieri, a city in southern Albania, which had abundant supply of oil

and natural gas. The slightest difference is that it was discovered, but no concentrated

effort was made for the industrial development of Albania and making use of it. The

75 Nicolas J. Costa, Albania: A European Enigma, (New York: Columbia University Press), 1995, 120.76 Tom Winnifrith Perspectives on Albania, (London: Macmillan, 1992), 115-137.77 Edwin E. Jacques, The Albanians: An Ethnic History from Prehistoric Times to the Present, (London: McFarm, 1995), 220-250.

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Albanian soil was so rich that it became the largest deposit of chrome ore in Eastern

Europe78.

Due to the intention paid to industrialization Zog denied the importance of

agriculture. At the beginning of his regime agriculture was the most profitable branch of

economy, “the mainspring of economy, which gave 90 per cent of the total national

income”79, but it declined. All the taxes gathered by the farms and the mines were

spent by the royal court and nothing was used to help in the agricultural prosperity of

Albania. Furthermore, it remained at a very primitive level, in 1938 there were only 32

tractors in the entire country, and it became impossible to keep up80. Nevertheless, it

still provided some incomes, so 4.5 per cent of incomes came from primitive industry

the rest come from primitive agriculture equally81.

Although World War II would be pursued in Albania from the establishment of a

new regime, the communist regime. It is of academic relevance to consult the

economic circumstances of Albania before the communist takeover, in order to sort out

the impact of the communist regime in Albania. Thus the economic circumstances of

Albania before the communist takeover were at a very pitiable level.

As early as 1939 the Italian army invaded Albania and kept her subjugated until

the breakdown of the fascist state”82. Thus the Italian government decided through

SAMIA (Società Anonima Mineraria Italo-Albanese- Anonymous Mineral Society Italo-

Albanian) to build in Rubik a plant for the production of blister, a power plant of a high

78 Edwin E. Jacques, The Albanians: An Ethnic History from Prehistoric Times to the Present, (London: McFarm, 1995), 220-250.79 Ramadan Marmullaku, Albania and the Albanians, (London: C. Hurst & Company, 1975), 35-40.80 Ibid.81 Edwin E. Jacques, The Albanians: An Ethnic History from Prehistoric Times to the Present, (London: McFarm, 1995), 220-250.82 Arshi Pipa, Albanian Stalinism, (New York: Columbia University Press, 1990), 14-15

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power potential. AMMI and Montecatini concentrated their attention on the production

of chrome, whereas FERRALBA on iron, ACI (Azienda Carboni Italiani- Italian Carbon

Enterprise was concerned with the production of carbon in Priskë, Memaliaj, Drenovë

and Radokal. SESA that owned concessions for the production of electricity, and

increased its power and attempted to create a trust called ELECTRALBA, but they did

not succeed due to the strong reaction of the Albanian capital in this sector. Other

Italian enterprises that operated in Albania were SCAIA concerned with the industry of

oil and alcohol, SAITAA (Società Anonima Industrie Tessili Autarchiche Albanesi-

Albanian Anonymous Society for Textile Industry), COA (Compagnia di Oli Albanesi-

Albanian Oil Company), SASA (Società Anonima Saccarifera Albanese) in Elbasan.

1938 1939 1940 1941 1942 1943

Petrol 10800 151250 147300 145000 155000 120000Carbon 3686 6900 7000 63500 13100 100000Bitumen 10000 15500 9500 6000 14500 4000Chrome 7000 11300 10300 12000 36000 6000

Table 3: Sector of Extracting Minerals (in tons)83

As it can be seen from table 2 the Italian government paid very much attention to the

energetic and petrol extraction sectors, although they were making use of the Albanian

natural resources and exporting it to Italy at a low price.

Albania was more deeply involved in World War II due to invasions from the

Fascist Italian forces and then the Nazi forces, which led to complete destruction.

Italian scholars like Caselli and Thoma, themselves admit that World War II had a very

hard effect on the Albanian economy. The presence of the foreign troops was relevant.

83 Gian Paolo Caselli, Grid Thoma, “La Storia Economica Albanese 1912-1950: Lo Stabilirsidell’Egemonia Italiana e il Primo Tentativo di Pianificazione” (History of the Economy of Albania 1912-1950: The Stabilization of the Italian Hegemony and the First Attempt of Planning), Journal of EuropeanEconomic History, vol. 34, n 1, Spring 2005, 30.

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The troops especially during the last moments of the occupation destroyed all the

goods belonging to civil people and the state. The data for the war destruction were

very impressive84.

“7.3 per cent of the Albanian people was killed, 21 per cent ofthe buildings were destroyed, the zoo-technical richness wasreduced in , and the communication system was quitecompletely destroyed. The roads, ports, bridges, and thepetrol wells were all damaged and the industrial output wasjust ¼ compared to the industrial output of 1938. The simplestand most necessary articles were imported.85

Unfortunately no reliable statistics on Albania's wartime losses exist, but the United

Nations Relief and Rehabilitation Administration reported “about 30,000 Albanian war

dead, 200 destroyed villages, 18,000 destroyed houses, and about 100,000 people left

homeless in contrast Albanian official statistics claim somewhat higher losses” 86.

There were just 300 factories and primitive establishments, which were mainly

engaged with agricultural production. The electric energy, which was essential for

industry, was produced by some electrical plants in the main cities of Albania. There

were just 7,500 employed people and after the liberation of the country many of these

factories had ceased working completely87.

When the country was liberated none of these primitive factories functioned and

the new task for the government was to reconstruct Albania and to eradicate the

consequences of the war. The factories that were wrecked needed to be reconstructed

and others needed to be built. That is the common decision the government undertook

84 Gian Paolo Caselli, Grid Thoma, “La Storia Economica Albanese 1912-1950: Lo Stabilirsidell’Egemonia Italiana e il Primo Tentativo di Pianificazione” (History of the Economy of Albania 1912-1950: The Stabilization of the Italian Hegemony and the First Attempt of Planning), Journal of EuropeanEconomic History, vol. 34, n 1, Spring 2005, 30.85 Ibid.86 Microsoft® Encarta® Encyclopedia 2002. © 1993-2001 Microsoft Corporation. All rights reserved.87 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naco, Dhori Guri, Agim Shehu, Riza Minarolli, Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in the Socialist Albania), (Tiranë:

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to change the image of the country but moreover to make people “enjoy living I the

country”88 as it was preached in the speeches of the leader of the country. Apart from

the building of factories, there was an extreme need to have technical training as well

for the cadres. The number of cadres actually was just 380 people. The low wages and

the tremendous number of unemployed characterized the Albanian industry before the

communist takeover89. As a result of the Italo-German conquest the poor economic

material-technical basis of our industry was much more devastated. The material

damages of the war were as follows:

Country Damage Value

Albania $1,920Greece $838Soviet Union $824Yugoslavia $705Germany $721Italy $232Czechoslovakia $286Bulgaria $67

Table 4: World War II Damages per Country per capita90

The aftermath of the war was very difficult for Albania especially compared to the other

countries. The material damage was considerable and they reveal clearly the

conditions in which Albania came out of the war, demonstrating the economic

circumstances of Albania before the communist takeover.

8 Nëntori, 1980), 21-22.88 Enver Hoxha, Raport në Kongresin e VII të PPSH (Report in the Seventh Congress of PPSH),(Tiranë: 8 Nëntori, 1976), 4. This is mainly a collection of the speeches and the plans that thegovernment passed and voted for the transformation of the country. After being voted by the Ministers’Council they were published in books called Kongres (Congress) in order to be displayed to people andthe directors of enterprises. They contained the budget and the plans that each enterprise had to fulfill inthe stipulated time given by the government. Generally they were speeches of the leader whoannounced every decision.89 Vladimir Misja, Baza Materialo-Teknike dhe Efektiviteti i Investimeve në Industri, (The Material-Technical Basis and the Affectivity of Investments in Industry),(Tiranë: Shtypshkronja e Re 1983), 20.90 Ibid. 21.

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As seen from this short description, it is needless to state that the economic

circumstances of Albania were pretty insignificant after World War II, due to the

consecutive occupations Albania underwent. But what will the communist leaders

decide upon Albania after the takeover and the creation of the government?

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22..22.. TThhee CCoommmmuunniisstt TTaakkeeoovveerr,, tthhee LLeeaaddeerr’’ss,, IIddeeoollooggyy aanndd tthhee PPaarrttyy’’ss RRoollee iinn

EEccoonnoommiicc PPoolliicciieessEEnnvveerr HHooxxhhaa:: Another page of our history is being opened today, a

page that is in our hands to make it as glorious as ourwar against the invaders, and this is the war for thereconstruction of Albania, for the construction ofeconomy, for the construction of culture and education ofour people, for the raising of its social, economic andpolitical level… We need to understand here as well, aswe understood in the armed war that to give to people ahappy and prosperous life, the entire population needs tobe the factor of this great deed.91

These are the words the leader of the country, Mr. Enver Hoxha, announced the

liberation of the country and the creation of the government simultaneously

announcing the plans he had for the reconstruction of Albania. Inheriting one of the

poorest countries in Europe, not to say the most impoverished of European countries,

the leader of Albania embarked on an assiduous campaign to develop Albania. I will

consider the role of the leader in the entire process of industrialization in Albania as

until now it was taken for granted that Mr. Enver Hoxha, being the leader of the

country, controlled every aspect of life, including the economic one.

Consequently in order that I could be aware of the entire process of

industrialization, as it in reality happened, I interviewed various authorities during

communist regime. Thus Mr. Ramiz Alia, and one of the Ministers of Industry, and

some directors of the state-enterprises shed light on the role of the leader, the role of

ideology and also on the understanding of that time as far as the industrialization

process is concerned. Not just this but these interviews facilitated also the

91 Council of Ministers, File P016, Archives of PPSH (Speech in the meeting for the Liberation of Albaniaand the coming to Tirana of the Democratic Government) Enver Hoxha: “Sot po hapet një faqe tjetër e historisë sonë, një faqe që është në dorën tonë ta bëjmëpo aq të lavdishme, sa dhe luftën tonë kundër okupatorit, dhe kjo është lufta për rindërtimin eShqipërisë, për ngritjen e ekonomisë, për ngritjen e kulturës dhe arsimit të popullit tonë, për ngritjen enivelit shoqëror, ekonomik e politik të tij… Duhet të kuptojmë edhe këtu, ashtu siç e kuptuam në luftën earmatosur se për t’i kryer këto detyra, për t’i dhënë popullit një jetë të lumtur e më të begatshme, duhet

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understanding of the economic circumstances of Albania and broke some of the

common known paradigms, especially on the role of the leader and on the shift of

Albania towards the Soviet Union.

As such as I discovered from my research Mr. Hoxha was not deciding on every

field of life. The regime established was called by the leaders of the time as Mr. Alia

confirmed:

Dictatorship of the Proletariat or People’s Democracy and asall the other regimes, as Mr. Ramiz Alia confessed, it had itsown principles. These principles allowed free hand to the stateand as such it decided on the policies to be followed,including economy“92.

Elez Biberaj, chief of the Albania Service of Voice of America argues that “the creation

of the one-party state in Albania displayed the determination of the new leaders to

have good relations with the Soviet Union.”93 As such he alludes that the role of Mr.

Hoxha would be to control the social and economic aspects of Albania. He pointed the

direction of Albania towards Soviet Union only because of the desire of the Albanian

leaders to occupy the same position as Stalin. This has been taken for granted in

every kind of study about the Albanian communist regime. In fact Mr. Ramiz Alia, the

right hand of Enver Hoxha and later President of Albania clarified this in his interview

by pleading guilty to the decree of the end of the war declaring:

The relation with Soviet Union was not just a choice for us butit was a result of the end of World War II. The end of WorldWar II was a deal between the Soviet Union and Anglo-Americans, thus the Soviet and Anglo-American Sirs dividedthe World into two parts in Yalta. The entire eastern countrieswere given to the Soviet Union and the western to Anglo-

që populli i tërë të jetë faktori i kësaj vepre të madhe” (me rastin e Pavarësisë dhe të ardhjes sëQeverisë Demokratike në Tiranë).92Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.” …regjimi i mëparshëm quhej diktatura e proletariatit ose demokracia popullore siç e quanim ne, çdoregjim ka parimet e veta, dhe si i tillë vendoste dhe mbi ekonominë”.93 Elez Biberaj, Shqipëria në Tranzicion, (Albania in Transition), (Tiranë, Ora, 1998), 44-45.

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Americans... Albania could not do otherwise because no onewould allow it, as it had no better options as the world wasdivided among Stalin, Churchill and Roosevelt.94

Thus the relation with the Soviet Union did not have as basis the role of the leader that

the Albanian authorities aimed at in controlling the entire socio-economic and political

life of Albania. These interactions were thus mandatory due to the World War II peace

treaty. Consequently the new government, coping with the economic difficulties had to

switch into the Soviet side. The newly born government decided to revolutionize the

economy of the country and indeed it succeeded in doing it. There is a need to accept

that the Albanian economy prospered during communism.

The leader of the country was considered to be the leading figure and the final

word for any decision-making thanks to the centralization of economy. Unlike the other

leaders of the communist block, Enver Hoxha, was not an authoritarian leader when

talking about the economic aspect, thus according to the Minister of Industry of that

period:

Enver Hoxha did not dictate any decision to us. He never wentinto details, but led by ideology, he voted for any planproposed.95

Mr. Alia explained the process of decision-making and from there he sorts out the role

of Enver Hoxha. According to Mr. Alia:

The economy implemented by the Albanian Government wascentralized and as such the state had the full control overevery aspect. The plans of production were formulated by thegovernmental organisms, from the center, which assigned to

94Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.“Lidhja me Bashkimin Sovjetik nuk ishte vetëm një zgjedhje por ishte një rrjedhim i përfundimit të Luftëssë Dytë Botërore. Lufta II Botërore ishte një marrëveshje e Bashkimit Sovjetik dhe Anglo-Amerikane,kështu… dhe Zotërinjtë Sovjetikë e Anglo- Amerikanë në Jaltë e ndanë botën në dysh. Tëra vendet elindjes ishin ma Bashkimin Sovjetik, vendet Perëndimore ishin me Amerikën…. Shqipëria nuk mundbënte ndryshe, se nuk e linin, e ia kishin vënë litarin në fyt, nuk lejonte njeri të bënte ndryshe, se ishtendarë bota midis Stalinit, Rusveldit e Çurcillit.”95J.B. ex-Minister of Industry, interview by the author, April 20, 2007, transcript, Tiranë“Jo, Enver Hoxha, nuk na diktonte asnjë vendim. Ai asnjëherë nuk i shihte planet në detaje por iudhëhequr nga ideologjia miratonte çdo plan të propozuar”.

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an enterprise for instance to the Metallurgical Plant to producea specific amount of a certain product. The enterprise’sdirector had to comply with and produce the quantity assignedwith the number of employers it possessed but moreover withthe quality that the organism had prescribed to it.Consequently the director of the enterprise or the engineerhad no say. The Centralized Democratic System did not allowthe engineer or the entire enterprise to switch its direction,and in this sense it was called the centralized economy aswell.96

Through this description, the leader of the country just held the position of the

controller in terms of the ideology to be followed. Academically interesting is the fact

that in the huge framework of controlled economy there were initiatives as well,

although they were not of huge dimensions. The factory or state-enterprise had to

fulfill its primary task and after this, in case they had raw material they could give

another output. The realization of the plan was primary and in the case of the non-

fulfilling of the plan the commission asked for a report from the director and of the

engineer about the problems and about the ways to repair what happened in reality, or

sometimes to compensate the loss in the coming month.97

Actually the role of the party is also very much relevant to the economic policies.

Thus the leader was not the only one to consider the question of economy. A

commission acted at the national level to analyze every aspect of the entire process of

the work. It is true that centralized economy acted in Albania during communism but as

far as the degree of centralization is concerned there is a gap. Thus there is a need to

96 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.“…ekonomia ishte e centralizuar dhe shteti kishte kontrollin mbi çdo gjë. Planet e prodhimitformuloheshin nga organizmat qeveritare, nga qendra e cila i caktonte një ndërrmarje të caktruar, pshmetalurgjisë i caktonte që duhej të prodhonte një sasi të caktuar produktesh, të gjitha planifikoheshin.Dhe ndërrmarja duhej të prodhonte atë sasi me ato punëtorë, me atë cilësi që i caktohej dhe me atorroga që përcaktoheshin për sasinë e caktuar. Ishte e planifikuar dhe drejtori i ndërrmarjes ose inxhinjerinuk kishte mundësi të thoshte, “nuk prodhoj këto” pasi nuk mundej. Sistemi i Centralizuar Demokratiknuk lejonte që inxhinjeri ose ndërrmarja të ndyshonte drejtim, sepse nuk e linte sistemi. Dhe në këtëkuptim ekonomia ishte e centralizuar.”

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specify that the commission called the Council of Plans Commission and its members

were well-known engineers, technicians, economists and politicians as well.

But what was the leader’s role in ratifying an economic plan? As mentioned

above, each factory or state enterprise was assigned an essential task from above,

from the State Commission of Plans and not from Enver Hoxha, as Mr. Alia confirms

breaking the paradigm that it was Enver Hoxha who assigned the plans for each

enterprise. “The plans were formulated from the State Planning Commission, but their

propositions of this commission were approved in the government, where Mehmet

Shehu was the Prime Minister at that time. Further on the plan of the state was

approved in the Politburo as well where Enver Hoxha participated. Mr. Ramiz Alia

confessed that neither Enver Hoxha, nor Mehmet Shehu or Alia himself knew in detail

about every plan. Thus I could know that we produced chrome lets say 1,000,000 tons

by that time, but never of what percentage for instance I did not know how much of

20%, 25% or 30% chrome was produced. I was not interested as well to go into

details, as the Council of Plans Commission was engaged with this, where technicians,

engineers and specialists participated.”98

The role of the leader in planning the economy was never the one that is taken

for granted, that of having the final word in everything. The role of Enver Hoxha, as Mr.

Alia and the Minister of Industry declared was not the control of the plans concretely

but the general ideological line and by the general line Mr. Alia meant specifying what

type of economic policy needed to be followed. Hence we would follow the politics of

97 Enver Hoxha, Vëllimi 8, (Volume 8), (Tiranë: Naim Frashëri, 1971), 258.98 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.

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industrializing the country, and of collectivization, although collectivization was one of

the means to reach the total industrialization of the country99.

The other factor that influenced in the economic transformation of Albania was

the ideology. And the leading ideology of communism was regarded to be the Marxist

one. Femia connects communism to the ideology and he maintains that these two

approaches are linked so well that “it might be said that Marxism is the ideology and

communism the practice”100. Mr. Alia himself admits that they voted every decision on

the industrialization of Albania as they were led by the ideology. To cite him:

…at that time I voted for the industrialization of Albaniabecause I had my conviction that Albania would progress,Enver did everything with us. I voted the first about everyindustrial work.101

Thus the leading ideology was the Marxist one and the leaders of Albania always

emphasized this in every industrial work that they finished building. The relation with

Soviet Union led in fact to the isolation of the country and the ideology made everyone

obey to all the decisions. The leader of Albania was always preaching the idols of the

system and comparing it to capitalism always highlighting the negative sides of

capitalism. Thus in one of his speeches he stated:

the direction of the state, economy, culture, and of the army inthe capitalist countries has just foreign labels ‘democratic’because in reality the wild boot of capitalism, the law of junglerules there. There is democracy just for the wealthy and notfor the poor. The latter have to be subjected to the laws oftheir ‘democracy’, which naturally attempts to create in themthe idea that it is ‘their democracy’ of people’s vote that elects

99 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë. &J.B. ex-Minister of Industry, interview by the author, April 20, 2007, transcript, Tiranë.100 Joseph V. Femia, “Marxism and Communism” in Contemporary Political Ideologies, (London, New York: Continuum, 1999), 104101 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.“Në atë kohë e kemi votuar të gjithë industrializimin e Shqipërise, edhe unë e kam votuar, me të dyjaduart madje, se nuk i bëri Enveri këto vetëm por i bëri me ne. Unë e kam votuar se kisha bindje qëShqipëria do të zhvillohej …”

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the senators for instance in USA and that is the finestdemocracy in the world.102

The ideology and the leader’s speeches played an essential role in hypnotizing the

people, but at the same time this would be dubious as people talking about

communism nowadays can be divided into two groups, the ones who did not suffer

from communism and the others who did. The ones who never suffered or suffered a

little attribute Enver Hoxha with merits. Generally the people, who lived during the

communist era, claim that:

they learned how to read and write, there was electricity andhealth center in every village not mentioning the cities, theland commenced to be used well, there was a lack ofcriminality and finally there was equality.103

In contrast the anti-Communist people still remember the period of the ‘50s when there

was an enthusiasm to build the most prosperous Albania, the most fair despite the

repressive acts of the regime. But actually these people never acted against it due to

the fear or due to the ideology. Many scholars like Morozzo claim that the dictator

dedicated more attention to the ideology however one of the Ministers of Industry

emphasized in his interview that the leader made use of the ideology to revolutionize

the economy of Albania. Thus the ideology and its components were a means of

changing the image of Albania. It is the Marxist – Leninist ideology that the Albanian

102 Enver Hoxha, Raporte e Fjalime (shtator 1970- dhjetor 1971), Mbi Revolucionisimin e Mëtejshëm tëPartisë dhe të gjithë Jetës së Vendit, Instituti i Studimeve Marksiste-Leniniste Pranë KQ të PPSH ,(Tiranë: Shtëpia Botuese e Librit Politik, 1972), 10.Enver Hoxha: “drejtimi i shtetit, i ekonomisë, i kulturës dhe i ushtrisë në vendet kapitaliste ka vetëmetiketat e jashtme “demokratike” pasi në fakt atje sundon thundra e egër e kapitalizimit, ligji i tij ixhunglës. Atje ka demokraci vetëm për të pasurit e jo për të varfërit. Këta u duhet t’u nënshtrohenligjeve të kësaj lloj “demokracie” e cila natyrisht përpiqet të krijojë ndër ta përshtypjen se “demokracia” etyre e votës “popullore” që zgjedh për shembull senatorët në SHBA është “demokracia” më e përsosurnë botë”.103 Roberto Morozzo della Rocca, L’ Albania, le Radici della Crisi (Albania, the Roots of Crisis), (Tiranë:Shtëpia e Librit, 2000), 28.

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leader never ceased preaching and sometimes even appreciating in every speech, like

in the case of Hoxha’s speech in the Seventh Congress:

Long Life to Marxism- Leninism, Long Life to the VictoriousPPSH and to Our Heroic Working People and to the Wise andFaithful Leaders.104

Surely he never left without appreciating the people and the party, which was very

encouraging for the Albanians at that time. As the decision for the economic direction

of Albania was given, then Albania had to comply with it and to follow the ideology of

the Soviet Union where industry became primary.

Industrialization as a process had to be achieved by the employment of various

means. Actually observing these means we can realize that they were similar to the

Soviet ones. But which were these means utilized from the Albanian government to

achieve the total industrialization process?

104 Enver Hoxha. Raport në Kongresin VII të PPSH, (Report in the Seventh Congress of PPSH), (Tiranë:Shtëpia Botuese “8 Nëntori”, 1976), 89.

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22..33 TThhee IInndduussttrriiaalliizzaattiioonn PPrroojjeecctt aanndd tthhee MMeeaannss ttoo AAcchhiieevvee iitt

The Albanian government decided to implement various policies, including

economic ones. The economic policy that the new government would follow was an

outcome of the subordinated political relations to the Soviet Union. As the Soviet Union

accumulated military power and political influence and made progress in terms of its

industrial capacity, while Albania was in poor economic conditions, the new

government had to rely upon Soviet aid. Thus the economic policies were mostly

copied from the Soviet Union. Comrade Enver Hoxha, as he was called within the

party and in public, declared:

Such a straight Marxist-Leninist orientation of our Party, in thedevelopment of a wide range of our industry, is the solid basisfor our progress towards socialism.105

By following the Soviet example he related industrialization with socialism creating thus

a binomial that would continue to exist until the end. After this he stressed the fact that

socialist industrialization’s main aim was to win over capitalism. Thus the government

believed that through the politics of industrialization they would increase the

development of the production forces, but at the same time the construction and the

development of the technical basis of socialism. Industrialization would radically

transform the structure of social production, would create new branches apart from the

existing ones, and increase the role of the industrial production in order to fulfill the

necessities of the civil106. What the government declared was that the socialist

industrialization of Albania enlarged and strengthened the socialist property over the

105 Enver Hoxha, Vepra 5, (Work 5), (Tiranë: Libri Politik, 1965), 336. Enver Hoxha: “Një orientim i tillë i drejtë i partisë sonë, në zhvilllimin në shkallë të gjerë të industrisë sonë është baza e shëndoshë për shkuarjen tonë në socializëm”106 Pali Pejo, Lufta e Partisë së Punës së Shqipërisë për Ndërtimin e Bazë së Ekonomisë Socialiste,(The War of the Albanian Labor Party for the Construction of the Socialist Economic Basis), (Tiranë:Shtëpia Botuese “8 Nëntori”, 1974), 70-71.

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production means and became an important factor in the disappearance of the

capitalist elements107.

The plan of developing Albania was closely related to the industrialization of the

country in accordance to the Soviet example. Therefore a direct announcement from

the leader heralded:

The party in its program for development and empowering thesocialist economy since at the beginning and always hasfollowed a straight Marxist-Leninist line giving the primaryimportance to the increase and widen industry, itsempowering and its modernization.108

Every progress in industry was attributed to the party program and the progress was

claimed to be in all the fields, such as mining, communication, building and etc. This

was reflected in the collection of the congress and the progress was notified to all

including people. This is one of the examples of the proclamation of the leader that the

Albanian economy was progressing.

...an increase of 3.9 times in industrial production in 1975compared to 1960 from which 3.1 times of increase in theproduction of oil industry and chrome one. Copper industryhad an increase of 21 times more, whereas the electricindustry reached 7.1 times more. The boom was clearer in thechemical industry that was 24.8 times more and themechanical one reached 14.4 times more.109

The means that the Albanian government used to achieve the entire industrialization of

Albania were collectivization, state property, state enterprises, the five-year plans and

the development of heavy industry. These plans coincide with the Soviet models of

industrialization. The procedure of implementing industrialization is the same as in the

Soviet Union, starting with collectivization and then the other stages.

107 Këshilli I Ministrave, Industria (Industry), 1975, in I106 in Albanian Labor Party’s Archive108 Enver Hoxha. Raport në Kongresin VII të PPSH, (Report in the Seventh Congress of PPSH), (Tiranë:Shtëpia Botuese “8 Nëntori”, 1976), 41.109 Ibid

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Collectivization was the first step towards industrialization. Thus in accordance

with Derek Hall the first stage of industrialization is marked exactly by the process of

collectivization110. There are various streams of ideas as far as the function of

collectivization. Sjöberg emphasizes the voluntary collectivization led by the belief of

people that this would serve the industrialization of Albania111. In reality, that was a

policy implemented, and it was also reflected in the constitution of Albania, furthermore

the entire project of collectivization was controlled by a specific organism of the state

called Kadastër (cadastre) as one of the Ministers of industry ascribes nowadays112.

The other stream of ideas is from two Albanian economists that this would serve the

development of agriculture113. Mr. Alia in his interview regarded collectivization as a

positive characteristic of the period to lead to industrialization and to the unification of

people and properties. He stated what collectivization meant for that era:

As an idea collectivization was the unification of the lands,individuals especially in our village, which was poor as beforeit was owned by a small number of feudals, thus Myzeqe waspossessed just by 6-7 feudals, and the farmers were raja.114

Collectivization is always regarded as the first step towards industrialization, whereas

Derek Hall distinguishes three stages of what he names post-war collectivization in

Albania. According to him the first stage was related to the expropriation of the

farmers. Thus according to the regime “all holding above 20 hectares were confiscated

unless the owners were deemed to employ “advanced methods” of cultivation. The

110 Derek Hall, Albania and the Albanians, (London: Printer Publisher LTD, 1994), 19.111 Örjan Sjöberg, Rural Change and Development in Albania, (San Francisco: Westview Press, 1991),86.112 J.B. ex-Minister of Industry of Albania, interview by the author, April 20, 2007, transcript, Tiranë.113 Iljaz Fishta, Mihal Ziu, Historia e Ekonomisë së Shqipërisë 1944-1960, Tiranë: Dita, 2004, 340-341.114Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.Kolektivizimi si ide ishte racionale, e re, sepse bashkimi bën fuqinë, këtë mos e harro, një njeri i vetëmnuk bën asgjë, bashkë është më ndryshe. Si ide kolektivizimi, bashkimi i tokave, bashkimi i njerëzve,

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second stage is concerned with the “combination of Marxist rhetoric and the

Machiavellian pragmatism. The characteristic of this period was land redistribution to

the landless peasantry”. The third stage is exemplified from the “total collectivization of

the lands and its consequences were the development of larger units of production, the

elimination of former monocultural aspect of Albanian agriculture. Regional

specialization and land reclamation and irrigation for more cultivated land were the

other two consequences of collectivization”115. But actually he forgot about the moment

of Mr. Alia’s rule, who attempted to correct the mistakes done by the previous regime.

As a result Mr. Alia who determined to support the farmers.

…my correction was to return the farmers the land parcel, notentirely, not three acres but just one, so that they could fulfilltheir necessities.116

The other means that the Albanian government utilized for the transformation of

the Albanian economy was controlled economy, meaning by that the nationalization of

property. Thus the state instigated centralized economy and as such the state had the

full control of the property, calling it as state property and prohibiting private property.

Zickel argues that the state owned all the economy and moreover the state-enterprises

served this function117. The five-year plans were part of the realization of the process

of industrialization. These five-year plans were formulated by the commission of the

state and then they were sent for approval to the state apparatus. Actually the five year

plans were also split into one year plans and these plans were delivered to the

sidomos në fshatin tonë, që ish fshat i varfër, por fshatin tonë më parë e kishin në dorë feudalët, tërëMyzeqenë e kishin 6-7 feudalë, kurse fshatarët ishin raja.115 Derek Hall, Albania and the Albanians, (London: Printer Publisher LTD, 1994), 35.116 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë“korrigjimi im ishte që fshatarëve t’u ktheja atë parcelën e tokës, jo të plotë, jo 3 dynym, por një dynymvetëm që të plotësonin nevojat e tyre.”117 Raymond Zickel, Albania, a Country Study: Area Handbook Series, (Washington DC: Library of Congress Press, 1994), 105

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directors of the enterprises with the expectation that they would fulfill and overpass the

plan118.

The previous direction of the Albanian economy was agricultural one but then

the leader of the country undertook the action of changing it into industrial. Enver

Hoxha himself announced in one of the Party’s Congresses:

I am glad to observe now that the industrialization with quicksteps of the country is bringing closer the assigned objectivefrom the Party, the transformation of Albania from anagricultural-industrial country into an industrial-agriculturalone.119

The industrialization period was related to the development of the most important

branches of industry, focusing on the construction of the factories that would deal with

the heavy industry, light industry and alimentary industry as well. The other industrial

branch of essential importance for Albania as it would lead to the economic growth due

to export was the construction of the power plants in quite all the most important cities.

The mines became profitable as well and as such the Albanian government prioritized

them as Albania became one of the exporters of various minerals.

The other characteristic of the plans to develop Albania was concerned with the

creation and the development of heavy industry. The Albanian government was

developing by that time black industry, military industry and mines as well. The

functioning at that time of various heavy industrial deeds in different cities of Albania

demonstrated it. These heavy industrial enterprises or plants were situated in various

cities. The desire to make use of their natural resources, the belief in the future

118 Ramadan Marmullaku, Albania and the Albanians, ( London: C. Hurst, 1975), 25-27.119 Enver Hoxha, Raport në Kongresin e VII të PPSH (Report in the Seventh Congress of PPSH), (Tiranë: 8 Nëntori, 1976), 4Enver Hoxha -“ Me kënaqësi konstatojmë tani se industrializimi me ritme të shpejta po e afron për ditë e

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prosperity of Albania and the yearn for following the Soviet example made the

Albanian government undertake operations that would industrialize Albania. Thus Mr.

Alia himself affirms:

We voted heavy industry; me myself voted it more. This isbecause I had the conviction to have metallurgy to work andexploit our minerals, as we had the minerals120.

This was not the only reason of developing metallurgy. The other reasons as the

Minister of Industry of that time confirms are related to the independence of Albania

and the protection of Albania.

We developed heavy industry because we wanted Albania tobe independent from the other countries. We wanted to useour minerals and have a steady economy in Albania toprosper everyday. Whereas we developed military industry inorder that we could protect our country when necessaryespecially if the enemies would attack us.121

A new direction was evident in Albanian economy in the ‘70s. Swain assumes that

despite the changes in the economic policies in the other countries in 1970s, Albania

continued with the same ones and fell in isolation122. That is one of the peculiarities of

the Albanian communist regime. Swain focuses only after the 1970s but this process

started partially since the 1960s when Albania broke with Soviet Union. Albania did

follow the Soviet models of industrial but when the switch during the Khrushchev rule

occurred, Albania ceased to follow Soviet Union anymore. As a result various works

started with the Soviet aid were interrupted and this was considered and reflected in

më shumë objektivin e caktuar nga Partia, shndërrimin e Shqipërisë nga një vend bujqësoro-industrialnë një vend industrialo-bujqësor”120Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.“E kemi votuar, dhe unë e kam ngrit dorën me të madhe, biles të dyja. Pse? Se kisha bindje ëëëë, tëkishim një metalurgji që të punonim ne, të shfrytëzonim ne mineralet tona sepse neve i kishim mineralet”121 J.B. ex-Minister of Industry of Albania, interview by the author, April 20, 2007, transcript, Tiranë. “E zhvilluam industrinë e rëndë sepse donim që Shqipëria të ishte e pavarur nga shtetet e tjera. Nedonim që të shfrytëzonim mineralet tona që të kishim një ekonomi sa më të fortë, që Shqipëria tëpëparonte çdo ditë. Kurse industrinë ushtarake e zhvilluam që të mbronim vendin tonë kur të ishte enevojshme, veçanërisht kur armiqtë të na sulmonin”

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the Albanian media as the “Khrushchevite betrayal”123. Then after Soviet Union, it was

the turn of the other communist countries that led to the isolation of Albania.

As a conclusion I can fully claim on basis of the sources that the communist

takeover led to the creation of a state that implemented various economic policies,

mainly copied from Soviet Union. A range of factors not just one, the leader, taken for

granted in other studies, influenced in this aspect led to the Albanian industrialization.

122 Geoffrey Swain & Nigel Swain, Eastern Europe since 1945, (United States: Palgrave Macmillan,2003), 176123 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli, Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8 Nëntori, 1980), 28

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22..44.. IInndduussttrriiaalliizzaattiioonn ooff AAllbbaanniiaa dduurriinngg CCoommmmuunniissmmEEnnvveerr HHooxxhhaa-- During the Five-Year Plan we need to

create an industry, which would be able to raise in a higher level the production of wide consumption on basis of making good use of national raw material aiming at a lower import of these articles.124

Taking into account the economic circumstances of Albania, the government

embarked in various campaigns to transform the Albanian economy, and despite the

negative sides of the regime very much discussed about, there is a need to consider

the positive sides as well, which are mainly related to the economic prosperity. I will

argue that the Albanian economy underwent a complete development under the

communist regime.

The Stages of Industrialization

The process of industrialization was composed of various stages, which instigated with

collectivization as the first step. Mr. Alia himself confessed that they did this, as

collectivization was a means of reaching to the industrialization. Hence through the

interference of collectivization they created the cooperatives, which later on were

enlarged due to the decision of the government. Even at present Mr. Alia protects the

idea of collectivization:

124 Enver Hoxha, Vëllimi 8 (Volume 8), (Tiranë, 1971), 321Enver Hoxha: “Gjatë pesëvjeçarit të krijohet një industri e cila të jetë e aftë të ngrejë në një nivel shumëmë të lartë prodhimin e mallrave të konsumit të gjërë në bazë të shfrytëzimit më të madh të lëndës sëparë në vend dhe me qëllim që të ulet në mënyrë të dukshme importimi i këtyre artikujve nga jashtë.”

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Collectivization, as an idea, wasa rational one, because unitymakes power, this is in everysystem, meaning regime,because one individual cannotdo anything alone, together, it isdifferent. Collectivization was agood idea and fruitful, but therewere mistakes during itsimplementation.125

After the implementation of collectivization

the communist government set off the

process of industrialization focusing on

industry, but paying special attention to

heavy industry. One of the means through

which the government decided to use in

order to progress in the industrial field was

the implementation of the Five-Year Plans,

and each of these plans composes one

specific stage of industrialization. The first phase of Albanian industrialization started

with the Two – Year Plan of 1949-1950, with the international aid of Stalin. Thus

thanks to this help the construction of the textile plant named “Stalin” together with the

power plant adding a living center next to it as well. The plants for cotton-spinning in

Rrogozhina and Fier as well. The other industrial works started to be constructed, like

the sugar factory in Maliq, a zone in Korça. Additionally a power plant was settled there

125Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.“zhvillimit të industrisë nëpërmjet kolektivizimit, pasi kolektivizimi ishte rrugë, e kupton, me ndërhyrje meanën e kolektivizimi zhvilluam bujqësinë, me anën e kolektivizimit krijuam kooperativat e vogla e ato uzgjeruan. Edhe kolektivizimi ka patur anët negative, për mendimin tim, ti në daç merre në daç mos emerr, Kolektivizimi ishte ide e mirë dhe e frytshme, por pati gabime gjatë implementimit.”

Figure 1: Map of Albania

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as well to supply the sugar factory with electricity126. This plan marked thus the first

phase of industrialization of Albania.

The second stage I indicated by the beginning of the Five-Year Plans. The first

Five-Year Plan started in 1951 ratified from the Second Congress of the Party. The

main economic aim of this plan consisted in the continuation with a faster rhythm of the

construction of the economic basis of socialism. The beginning of this Five-Year Plan

led to the displaying of the socialist industrial basis as a group of engineers maintain.

This period marks the beginning of the other main power plants that would provide

electricity in the entire Albania. The branches of industry that started to generate were

light industry and heavy industry, including clothes and food industry. Various industrial

works were the output of this five-year plan and the construction of socialism as well

had its origins. The engineers learned how to work with a technology, which entered

Albania for the first time. This period marks the creation of the first group of cadres,

who would operate for the further development of Albania127. According to the

documents consulted in the archives of PPSH (Albanian Labor Party) the industrial

production after the first five-year plan thus in 1955 was “3 times more than in 1950

and 11.5 times more compared to 1938”128. This five-year plan was very much

appreciated from the leader of the country who in the third congress of the party

asserted “The First Five-Year Plan can be called the five-year of the creation of the

126Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8 Nëntori,1980), 22-24127 Ibid. 25128 Council of Ministers, File I0615, Archives of PPSH

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new and modern people’s industry, the basis of the protective abilities of our fatherland

and of the continuous amelioration of the people’s prosperity”.129

The third phase begins with the second five-year plan, that is a result of the first

plan. It persisted with the continuation of the projects of the first five-year plan but

surely launching the efforts for other endeavors. Compared to the first five-year plan

there were 150 important buildings and in the second one there were 250 ones,

according to the documents of the Ministers’ Council. As a result of the industrial works

built during the first and second five-year plans the industrial product was 26 times

more than in 1938. A better amelioration of the work in construction was obvious in the

second plan and this affected in the fulfilling of the plans in a shorter time and then in

over-passing the plans dictated to the enterprises and to the factories or plant’s

directors.

The third five-year plan indicated the fourth stage and that is the beginning of

heavy industry. By considering the case of Soviet Union, the Albanian government

decided to give special credit to heavy industry. Most of the heavy industry plants were

built during this period. The construction plans for this period grew 16 per cent

compared to the first five-year plan, the yield increased 44 per cent, the cost

decreased of 16 per cent130. There was a slow down of the construction of the

industrial works, due to the breakdown with Soviet Union, and in the Albanian

newspapers it was announced that this slow down was due to the betrayal of the

129 Council of Ministers, File I 0615, Archives of PPSH.Enver Hoxha: “Pesëvjeçari i Parë mund të quhet pesëvjeçari i krijimit të industrisë së re dhe moderne, ecila është bazë e zhvillimit të ekonomisë popullore, baza e aftësisë mbrojtëse të atdheut tonë dhe epërmirësimit të vazhdueshëm të mirëqënies së popullit”.130 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8 Nëntori,1980), 27.

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“Khrushchevite Soviet Union”131. Still there was a considerable number of industrial

buildings, like the plant wire plant in Shkodra and power plants in various cities of

Albania as well. It is worth mentioning that this is the period when the most important

plant was built in Elbasan, the Metallurgical Plant. In this phase it was built and very

few of its units worked directly. The textile plant in Berat was built within this period as

well demonstrating thus the intention of the government to develop all the industrial

branches. Shoes’ factories in Shkodër, Gjirokastë and Korçë, brick kilns in Tirana,

wood plant in Laç, cement factories in Fushë-Krujë and Elbasan, the nitrogen-

ammonium plant in Fier, the plastic factory in Durrës were part of the work of this

period as well132.

The fifth stage of industrialization is marked with the beginning of the fourth

industrial plan. This culmination of industrialization is characteristic of this period. Apart

from this, the technical-scientific revolution took place. The revolutionary initiatives of

the workers burst out exactly by this time. There were 6000 proposals for

rationalizations from 1966-1967 and only 4000 were realized with just 10.5 million

lek133. The Ministry of Mines became more active and most of the mines were opened

during this time as now by that time Albania had succeeded in producing the

necessary machinery as until now the mines were maintained with imported

machinery. The leader himself stressed the importance of the mines. He asserted that:

…The mines occupy an important place in our economy andits good use creates a good source of incomes for the people.We are all aware about their conditions from the war. We areall aware about the stealth of the Yugoslav Trockists

131 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8 Nëntori,1980), 28.132 Ibid.33-36.133 Ibid. 37.

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especially in the industry of petrol, when they attempted totrack petrol and its derivatives with anti-scientific and capitalistmethods, simultaneously damaging the construction yard andto sabotage its use in the future.134

Surely it is needed to emphasize that the Albanian government had to be careful with

the expanses because it was losing quite all the allies.

Various scholars claim that the fifth five-year plan delineates the culmination of

industry, as most of the heavy industry woks started to work with their full capacity.

The case of the Metallurgical Plant in Elbasan and the power plant called Vau i Dejës,

the plant for the processing of petrol in other cities were clear examples of this period.

Additionally the refineries of petrol in Ballsh, Fier commenced functioning during this

period. As a result of the hard work of the workers the results were to be praised. Thus

the yield of the work was 28 per cent higher; the degree of the mechanization of the

work was higher as well135.

The next phase was denoted by the sixth five –year plan, which would open

great perspectives in the construction aspect. Except the concluding of the previous

five-year plan’s constructions it commenced other important ones like the cement

factories, in Elbasan, Fier and Vlorë.

The five-year plans for Albanian industry continued to progress but the Albanian

economy commenced to decline by 1978. The situation was becoming worse every

year. The years 1982-1983 would mark, as Mr. Alia confessed, the final shot of the

134 Enver Hoxha, Vëllimi 8, (Volume 8), (Tiranë: Naim Frashëri, 197), 318.Enver Hoxha: “Minierat zënë një vend të rëndësishëm në eknominë tonë dhe shfrytëzimi sa më shumë Ityre krijon një burim të mirë të ardhurash për popullin . Dihet se në çgjendje të mjerueshme itrashëguam nga lufta këto miniera, dihen dëmet e mëdha dhe grabitjet që na shkaktuan në këtë sectortrockistët jugosllavë, të cilët veçanërisht në industrinë e naftës, u përpoqën të thithin sa më tepër e samë shpejt naftën dhe nënproduktet e saj me metoda antishkencore e kapitaliste dhe njëkohësisht tëdëmtonin kantjeret dhe të sabotonin shfrytëzimin qe do të bëhej në të ardhmen.”

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Albanian economy. Albania was completely isolated from the communist block as such

it could not rely on the help or export in these countries. Mr. Alia admitted:

There was a decline of the economy, industry included, whichcame from the breakdown with China, that is a mistake wehave done. We became somehow quarrelsome and wewanted to dictate to China what kind of economic policy tofollow, it followed the policy that was in accordance to itsinterests, we raged, and we suffered the consequences, asthe breakdown with China interrupted the aid that Chinagranted to us and by that time 1978 the economiccircumstances of Albania began to deteriorate, but oureconomy could keep up with its fat until 1982-1983. Then by1983 it deteriorated more…136

The situation continued to be the same until 1985 but the leader of the country never

revealed it how it was in reality. Only after Mr. Enver Hoxha’s passing away Mr. Ramiz

Alia took the position of the president of People’s Republic of Albania. He surely had to

follow an economic policy to keep on with Albanian economy.

How much did the economic policies of Mr. Alia differ from the existing ones?

Mr. Alia in his interview proclaimed that his economic policies did not fluctuate radically

but he attempted to make some corrections. Thus he settled on to make some

alterations in the economic field as in the political one, such as the redistribution of a

specific area of land to the farmers, some livestock, but unfortunately he

acknowledged that in the field of industry he did nothing because he had no budget in

135 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8 Nëntori,1980), 43-44136 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë“Sepse kishte rënie që erdhi nga prishja me Kinën, një gabim tjetër që kemi bërë neve, ne u bëmë njëçikë zevzekë, ne deshëm t’I diktojmë Kinës ç’politikë të ndiqte, ajo ndoqi politikën për interesat e veta,ne u zemëruam pse ajo e ndoqi, u zemëruam ne, ne e hëngrëm, sepse prishja e marrëdhënieve meKinën dobësoi ndihmën që na jepte Kina neve, dhe në atë kohën kur Kina ndërpeu ndihmën, nga ‘78filloi të keqësohej, por deri në 1982-‘83 mbaheshe ekonomia jonë me dhjamin e vet, e pastaj pas 1983 udobësua…”

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his disposal. They had “no particular objective as they had no power”137 as Mr. Alia

asserted himself during the interview. The constructions remained in stagnation and

part of industry could not support itself anymore due to the deterioration of the

circumstances. There was need for raw material and it could only be imported, the

same view was for light industry as well. Nature did not help us as well. The year 1987

was drought, the hardest one ever and “I passed through these circumstances,

especially in 1987”138, Mr. Alia imparted, but this drought did not deprive the Albanians

from electricity as we had water reserves but it deprived Albania from exporting.

Those years were a little sinister—Mr. Ramiz Alia139

At that time, according to Mr. Alia, President of the Republic of Albania, they used part

of the energy to fulfill the necessities of the country, and they exported very little, in

consistent with some contracts they had. Hence the economic conditions of Albania

continued to be in stagnation and sometimes even becoming worse until the collapse

of communism.

The hydroelectric power of Albania was very much important in terms of the incomes

that it brought to Albania. The development stages of hydroelectric power of Albania

are shorter than the entire industrial works.

Albania has got important hydroelectric reserves and the possible energy that

can be produced from the Albanian rivers is 20 milliards kWh140. The hydroelectric

development in Albania passed though some important stages.

137 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë“S’kishim asnjë objektiv të veçantë se s’kishim fuqi”138 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë“Unë i kam hequr vetë në kurriz këto”139 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë“Ato vite ishin pak të mbrapshta”140 Vladimir Misja, Krijimi dhe Zhvillimi i Industrisë në RPSH (The Creation and the Development ofIndustry in RPSH), (Tiranë: N. Frashëri, 1963), 321

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The first stage was the one of the reconstruction of the existing hydroelectric

sources. This period was from 1949-1950 and its characteristic is the reconstruction of

the destroyed power plants during the war. Consequently the electric production in

1950 grew 21.4 million kWh from 4.4 million kWh that was in 1945141.

The second stage started in 1951-1955 and it was characterized from further

enlargement and empowering of the hydroelectric sources. It was crowned with the

construction of the hydroelectric plant “Lenin”. The third phase started in 1955-1960

and one of the main works was the hydroelectric plant “Karl Marx” in 1957. The years

1963-1965 would mark the full functioning of the most important hydroelectric plants in

Albania and in a low cost compared to what had been dictated to them by the Soviet

leaders.

What was distinctive of Albanian industrialization was its distributive character,

meaning that the government decided to industrialize the entire country. As such they

relied on some principles when building up a new industrial enterprise or plant. These

principles according to Mr. Alia were the subsequent ones:

Mainly the reasons were, the exploitation of resources, butalso the ideological spectrum that was primary, heavyindustry. Additionally the working force and the situation of thecity were effective, not mentioning even the distribution ofindustry in the entire country.142

The distribution of industry in all the cities meant “a territorial distribution of the volume

of the industrial production of the productive main funds and of the working force

141 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8Nëntori, 1980), 51142 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, TiranëKryesisht ishte kjo shfrytëzimi i burimeve, por ishte dhe spektri ideologjik që primare, industria e rëndë.Por edhe fuqia punëtore e vendndodhja e qytetit, plus pastaj dhe shpërndarja e industrisë në të gjithëvendin”

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engaged with the industrial activity in among the cities”143. The state decided to

implement to distribute industry in a rational way, as the primary task of the socialist

government was the development of every each district144. The territorial distribution

of industry required technical training and supply as well. As a result of this distribution

various cities like Shkodër, Durrës, Tiranë, Korçë, Elbasan, Vlorë, Fier and Brerat

improved in terms of economic development as diverse branches of industry were

settled in these cities. Obviously progress was more visible in the cities which before

were at a low level of economy, worth mentioning Pukë, Mat, Peshkopi, Sarandë,

when in 1960 the industrial output of these cities overfill the industrial output of Vlora

and Korçë in 1950145.

Regarding that the communist regime was leading to the total transformation, it

had to control the process through various regulations. These regulations were even

reflected in the Albanian Constitution and in the media as well.

143 Grup Autorësh, Ekonomia dhe Organizimi i Industrisë, (The Economy and Organization of Industry)(Tiranë: Shtypshkronja Revista Dispenca, 1973), 449.144 P. Xhuvani, H. Papajorgji, V. Misja, A. Pano, Ekonomia e Industrisë në RPSH,(The Economy ofIndustry in People’s Republic of Albania), (Tiranë 1963, N.I.Sh, Mihal Duri), 169.I use the term district to indicate the administrative division of Albania. Apart from town, there was thedivision in districts. A district was composed of a main city that was more developed and bigger in termsof territory and various other small ones surrounding the main city.145 Ibid. 178-179.

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22..55.. LLeeggaall aanndd PPoolliittiiccaall AAssppeeccttss ooff IInndduussttrriiaalliizzaattiioonn ooff AAllbbaanniiaa dduurriinngg

CCoommmmuunniissmm

The Albanian economic development especially the process of industrialization

was very much reflected in all the existing media and at the same time it was part of

the political propaganda as well. Hence each industrial work finished was inaugurated

by the leader of the country and the speech of the leader emphasized the role of the

people, the role of the leader but also the role of ideology, the leading one, as the

Marxist-Leninist ideology was regarded by that time.

Actually as a dictatorial regime the one of Albania from 1944—1991, all the

processes and the procedures about the enterprises’ functioning was specified in the

code of work in the constitution of Albania, as such there were no ways of escaping the

normal judging or of sabotage. The codes of the constitution of People’s Republic of

Albania specified the rationalization cases, the number of the workers in an enterprise

and the role of the staff, including the director and the engineers. Thus the entire

process of industrialization had to go in accordance to the acts of the constitution.

For instance in the case of rationalizations the specific acts settled all the work

process focusing thus from the creation of a rationalization, to the process of being

given the patent for it to the creator, and then the entire procedure of giving life to it.

The definition for a rationalization according to the Act 330 to cite it:

Rationalization is any solution that improves the technique ofproduction, increases the volume of production, its variety,gives new output, and increases the yield and the cost ofproduction. Rationalization is called the solution that improvesthe organization of the work and the administration ofeconomy that has leads to high profits of the economy as well.It is not called rationalization the solution of the specified tasks

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on basis of the indorsed plans or orders given from theenterprise, institution or organization.146

As seen from the act the government had specified a definition about rationalization

and controlled the situation perfectly well. At least this did not mean that the

government deprived the authors of the rationalization from the recognition of these

rationalizations or from the opportunity of putting them into life. Thus in accordance to

the Article 331, which reads as follows, the inventor gets the patent of his

rationalization:

The authors of the invention and of the rationalizations aresupplied with a patent of authorship and for the rationalizationwith a patent of rationalization.147

The role of the state as a controller of every phenomenon then as indicated by the

constitution, the state had the right of exploiting the rationalization. The article 332

states:

The right of exploiting the invention or the rationalizationbelongs to the state. In similar cases to the state, theagricultural cooperatives have the right to exploit theinventions and rationalizations that have to do with theiractivity.148

The same ability of the state is noticed in the process of selling the invention.

Accordingly the Act 333 specifies the conditions of selling the rationalization to another

country.

146 Byroja Politike pranë Këshillit të Ministrave, Kodet e Republikës Popullore Socialiste të Shqipërisë,(Codes of the Socialist People’s Republic of Albania), (Tiranë: Mihal Duri, 1982).Neni 330: Racionalizim quhet zgjidhja që përmirëson teknikën e teknologjinë e prodhimit, që shtonvëllimin e prodhimit, të llojshmërisë, nxjerr prodhime të reja, rrit rendimentin e ul koston e prodhimit.Racionalizim quhet gjithashtu, zgjidhja që përmirëson organizimin e punës dhe administrimin eekonomisë, kur ka sjellë dobi të madhe ekonomike. Nuk quhet racionalizim zgjidhja e detyrave tëcaktuara në bazë të planeve të miratuara ose porosive të dhëna nga ndërrmarja , institucioni oseorganizata147 Ibid.Neni 331: Autorët e shpikjeve dhe të racionalizimeve pajisen për shpikje me dëshmi autori dhe përracionalizime me dëshmi racionalizimi.148 Ibid.

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The giving abroad from the author the invention orrationalization completed in the territory of People’s Republicof Albania, is done only with the permission of thecorresponding organisms.149

The other specified aspect of industrialization in Albania during communism was the

organization of enterprises. As far as this is concerned the constitution had exclusive

articles on the number of the workers in an enterprise. Article 7 in the Principles of the

Work Legislation stipulated that:

Work stands on the foundation of the social socialist stratumand it is the main source of securing the means of living forthe workers and clerks.150

Furthermore, the legislation specified the age of the citizen allowed to work in the state

enterprises or factories. Consequently according to Article 22, which reads as follows:

The citizen who is 15 years old can be employed. His/heremployment is done according to the profession, abilities andpersonal inclinations to be on conformity to the necessities ofthe society.151

The number of the employers was generally specified but in order to have many

people employed the government allowed the enterprises to be opened though they

did not have the exact number appointed to them. Thus according to the Article 4.

The enterprises, institutions and army units are allowed toaccept and keep as employees until the average numberassigned in the plan.152

Neni 332: E drejta e shfrytëzimit të shpikjes ose të racionalizimit I takon shtetit. Në kushtet e njëjta meshtetin, kooperativat bujqësore kanë të drejtë të shfrytëzojnë shpikjet dhe racionalizimet që kanë tëbëjnë më veprimtarinë e tyre.149 Byroja Politike pranë Këshillit të Ministrave, Kodet e Republikës Popullore Socialiste të Shqipërisë,(Codes of the Socialist People’s Republic of Albania), (Tiranë: Mihal Duri, 1982)Neni 333: Dhënia e shpikjes dhe e racionalizimit nga autori jashtë shtetit e një shpikjeve ose e njëracionalizimi, që është bërë në territorin e Republikës Popullore të Shqipërisë, behen vetëm me lejen eorganeve shtetërore përkatëse.150 Ibid.Neni 7: Puna qëndron në themelin e rendit shoqëror socialist dhe është burim kryesor i sigurimit tëmjeteve të jetesës për punëtorët dhe nëpunësit.151 Ibid.Neni 22: Shtetasi që ka mbushur moshën 15 vjeç merret në punë. Merrja në punë bëhet sipasprofesionit, aftësisë e prirjeve personale dhe në pajtim me nevojat e shoqërisë.152 Përmbledhëse e Përgjithshme e Legjislacionit në Fuqi te Republikës Popullore Socialiste tëShqipërisë 1945-1979, (Collection of the on Power General Legislation of Socialist People’s

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Moreover there were acts established in the constitution of Albania, no matter which of

the communist constitutions it was the acts about the enterprises, industrialization and

the development of the country remained stable. There was a definition of the state

enterprise and simultaneously acts that regulated their functioning. According to Act 2,

of the law number 7582 for the state enterprises in People’s Republic of Albania:

State enterprises were classified the national and local ones.The national enterprises are created with the order of theMinister or of the director of the other central institution,whereas the local enterprises are created with the verdict ofthe corresponding local power, where the enterprise issettled.153

Furthermore, the party and the state had established that as first provision for the well

functioning of the enterprises the state would look after the continuous elevation of the

workers in various terms. Accordingly Act 62 stated:

The state looks after the continuous ideo-political,educational, cultural and technical level elevation of theworkers and clerks. The workers’ or clerks’ training and theircontinuous elevation is done in accordance with thenecessities that growth of production requires on basis ofcontinuous depth of the technical-scientific revolution, and inaccordance with their participation in the direction of economyand the governing of the country.154

Republic of Albania 1945-1979),Volume I,(Tiranë 1979 Mihal Duri).Neni 4: Ndërmarrjet, institucionet dhe repartet ushtarake kanë të drejtë të pranojnë dhe të mbajnë nëpunë punëtorë vetëm gjer në numrin mesatar që u është caktuar në plan.153 Vendime të Këshillit të Ministrave në Zbatim të Reformës Ekonomike,(Decisions of the Ministers’Council in the Application of the Economic Reform), (Tiranë: Botim i Aparatit të Këshillit të Ministrave,December 1992).Law No. 7582 for the state enterprise, Act 2: Ndërrmarjet shtetërore klasifikohen në kombëtare dhelokale. Ndërrmarjet kombëtare krijohen me urdhër të ministrit ose drejtuesit të institucionit tjetër qëndror,kurse ndërrmarjet lokale krijohen me vendim të organeve të pushtetit lokal përkatës, ku kavendndodhjen (selinë) ndërrmarja.154 Përmbledhëse e Përgjithshme e Legjislacionit në Fuqi të Republikës Popullore Socialiste tëShqipërisë 1945-1979, (Collection of the on Power General Legislation of Socialist People’s Republicof Albania 1945-1979),Volume II, (Tiranë 1979 Mihal Duri).Neni 62: Shteti kujdeset për ngritjen e vazhdueshme të nivelit ideopolitik, arsimor, kulturor e teknik tëpunëtorëve dhe të nëpunësve. Përgatitja e punëtorëve ose ë nëpunësve dhe rritja e vazhdueshme ekualifikimit të tyre kryhet në përputhje me kërkesat që shtron rritja e prodhimit shoqëror në bazë tëthellimit të pandërprerë të revolucionit tekniko-shkencor, si dhe në përputhje me pjesëmarrjen e tyre nëdrejtimin e ekonomisë e në qeverisjen e vendit.

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Apart from the laws regulating the well-functioning of the enterprises especially the

state and local ones, there were laws and acts specified in the constitution, especially

the one of 1976 in particular for the industrial aspect. In accordance to Article 25 of the

Constitution of 1976:

The state organizes, directs and develops the entire economicand social life with a unique plan concentrated on ourpeople’s industry in order that it fulfills our people’s needs andstrengthens the independence of the country on basis of animproved technique.155

Various other decisions taken on specific were in the field of mines, railways and

communication. Thus the Ministers’ Council decided to:

Create volunteer groups that would help in sorting out anybreakdown and to avoid it before hand. The group has to becomposed of qualified workers and engineers156.

The enterprises that have in administration the railway lineshave to make them visible for the means of transport in orderthat there is no breakdown157.

The electric lines should pass on the telegraphic lines and theradiophone lines as well158.

155 Zëri i Popullit Newspaper, 21 January 1976 – (The constitution that was ratified by the Ministers’Council was published in parts in the Newspaper called Zëri i Popullit as it was an organ of the AlbanianPeople’s Party. This was in order that the entire Albanian population could be in current with thechanges of the laws and the decisions taken for them, as it was always claimed from the party and itsleaders.)Neni 25: Shteti organizon, drejton e zhvillon të tërë jetën ekonomike e shoqërore me plan unik tëpërqëndruar tek industria jonë popullore me qëllim që të plotësojë nevojat e popullit tonë e të forcohetpavarësia e vendit mbi bazën e teknikës së përparuar.156 Përmbledhëse e Përgjithshme e Legjislacionit në Fuqi te Republikës Popullore Socialiste tëShqipërisë 1945-1979, (Collection of the on Power General Legislation of Socialist People’sRepublic of Albania 1945-1979),Volume II, (Tiranë 1979 Mihal Duri).Neni 7: Të krijohen grupe vullnetare për mirëmbajtjen e minierave që kanë si qëllim të shmangin avaritë.157 Përmbledhëse e Përgjithshme e Legjislacionit në Fuqi të Republikës Popullore Socialiste tëShqipërisë 1945-1979, (Collection of the on Power General Legislation of Socialist People’s Republic ofAlbania 1945-1979),Volume II, (Tiranë 1979 Mihal Duri).Neni 2: Ndërrmarjet që kanë nën administrim vija hekurudhore duhet që t’i bë bëjnë ato të dukshme pëmjetet e transportit në mënyrë që të shmangen avaritë.158 Ibid.Neni 24: Vijat dhe vendosjet (instalimet) elektrike duhet të kalojnë mbi vijat dhe vendosjet telegrafonikedhe radiofonike.

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As perceived from the upper acts of laws the result is that the state had a pretty

centralized economy, which depended on the legislation and that every decision was

reflected in the constitution leaving no space of misunderstanding.

What was the industrial development reflected in the political arena of Albania?

The entire process of industrialization was made known to the population through

various ways, starting from the works of the leader of the country, Mr. Enver Hoxha

and then Mr. Ramiz Alia after 1985, but also during Hoxha’s rule, to the newspaper

articles and then to the media means as well.

Searching for the plans of the government and the achievements in the field of

industry, there is one special place that depicts them one by one. They are the works

of the leader of the country. In all the works the leader displayed the achievements the

means and the factors that influenced in the successful accomplishment of a particular

plan. In his Work 8 the leader stated the coming objective of the government and of the

people. Thus he stated:

A special care needs to be dedicated the textile industry in ourcountry. The plant named “Stalin” must start functioning.159

Apart from plans of industrialization, the works of Hoxha were a relevant source of the

factors that influenced in the completion of this process. Thus in accordance to the

leader’s directives in order that the completion of the Five-Year Plan of industry could

be achieved there was a need for the organization of the work in all the branches of

“our people’s economy”160 and the other need was the solution of various tasks. The

tasks deliberately were concerned with the relation Albania had with Soviet Union until

159 Enver Hoxha, Vëllimi 8, (Work 8), (Tiranë: Naim Frashëri, 1971), 321Enver Hoxha: Kujdes i veçantë duhet t’i kushtohet industrisë tekstile. Kombinati “Stalin” i tekstileveduhet të vihet në funksionim.160 Ibid.

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the breakdown. As a result a high technical level of the people’s economy was to be

built, and this could be done through the implementation of the Soviet experience and

of our prospered workers with their rationalizations in various branches of industry. A

strict discipline was preached in terms of the expanses. The workers had to fulfill the

plan but at a low cost possible161. The experience of Soviet Union was not the only

preached thing in the works of Enver Hoxha, but also the Soviet State. Thus he

acknowledges in front of the people in a speech that:

The Albanian people saw in the Soviet State his great, faithfuland strong friend.162

The internal factors were very much appreciated by the Albanian State and the

Albanian leader. The people were the first to be glorified. All the speeches of Enver

Hoxha ended with the same lines eulogizing the people and the country, always

enforcing the cult of fatherland, never disrupting history:

Long life to our heroic people!Long life to the glorified People’s Party, the inspiration andorganization of all our people’s victories!Long life and Strength to our People’s Republic!163

What was academically interesting about the communist era was the fact that all the

achievements were made public and the people had access in the development of

economy despite the totalitarian regime existing in Albania and the centralized

economy. Thus the leader informed in the collection of reports that:

161 Ibid. 320162 Ibid. 350Enver Hoxha: Populli ynë pa tre shteti Sovjetik mikun e tij më të madh, besnik dhe të fortë163 Enver Hoxha, Raporte e Fjalime (shtator 1970- dhjetor 1971), Mbi Revolucionisimin e mëtejshëm tëPartisë dhe të gjithë Jetës së Vendit, (Reports and Speeches (September 1970-December 1971) on theFurther Revolution of the Party and the Entire Country’s Life), (Tiranë: Shtëpia Botuese e Librit Politik,1972), 15Enver Hoxha: Rroftë Populli ynë heroik!Rroftë Partia e Lavdishme e Punës, frymëzuesja dhe organizartorja e të gjitha fitoreve të popullit tonë!Rroftë dhe u forcoftë Republika jonë Popullore!

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the production of energy increased twice compared to theprevious legislature and 2.4 times compared to 1965. Themechanical industry is in the right track as it facilitates thedevelopment of the entire economy. New mines were built,the chemical industry is improving and becoming modern andall this constitutes of the entire industrial production. Newunderground resources were discovered due to the technicalsocialist development and as such they are being made gooduse and other are expected to be discovered during this five-year plan.164

We have progressed very much in the field of electricity. Thebig and small cities today use electricity including the villagesas well, which before used the pine for illumination. Quite theentire of our industry functions by means of electricity, wehave built the power plant “Lenin” and a new one is being builton Mati River.165

“Zëri i Popullit” being the organ of PPSH aimed at revealing the success as well. Thus

the success of 1963 published in edition number 6 was the following:

Industry Percentage

Electricity 101.70%Coal 100.80%Chrome 100%Copper 100%Clothes 101.80%Alimentary 101.90%

Table 5: Balance of Industrial Production of 1963166

Emphasis need to be put on the fact that the process of industrialization, its progress

and its stages were very much reflected in the political life as well and moreover they

were made known to the people in order that they can be in current with them.

Furthermore the process of industrialization and the people who had a position had a

specific schemata on how to act when facing various events. The constitution of

Albania with its acts and laws was a very clear basis of judgment.

164 Ibid. 17-18.165 Councill of Ministers, File P019, Archives of PPSH

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Dimensions and Conclusions

But which was the outcome of the Albanian industrial development during

communism? It needs to be stressed the fact that during the communist regime the

Albanian economy underwent a total transformation that helped Albania overcome the

difficult economic circumstances of after-war and made it develop to such extent that it

could support its necessities and export industrial products to other countries. Albania

became powerful potential o import for various countries. Zickel argues that Albania

mostly exported energy due to the high water potential and as a result it could supply

the entire industry, family consumption and import energy as well167. Mr. Alia himself

gives figures of the production of energy in Albania. He maintains that Albania

produced 13 million kWh electric energy in a day and this was sufficient to keep

industry, which was not easy as 1 million kWh per day was consumed from the

Metallurgical Plant in Elbasan168. The incomes from the import of electricity were very

significant for the country and consequently in the crisis of 1987 Albania faced

hardships due to the drought and this limited the abilities of Albania to export

electricity169.

Minerals and related products have accounted three quarters of its total exports.

Albania boasts of producing 23 minerals commercially, but in reality everything except

the producing of chrome, copper, nickel, and oil is uneconomic by market criteria if

labor and other costs were properly calculated. Since the late 1970s Albania has been

166 Zëri i Popullit, No. 6, January 8, 1963, 2.167 Raymond Zickel, Albania, a Country Study: Area Handbook Series, (Washington DC: Library ofCongress Press, 1994), 85168 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.Ne prodhonim 13 milion kworë në ditë dhe Kombinati Metalurgjik i Elbasanit neve na merrte 1 milionkilovatorë energji169 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë

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the world’s third largest producer of chrome. Its 14 mines clustered along the Yugoslav

border have supplied about 10% of the total world output. It has been able to produce

chrome, nickel, and cobalt as by-products relatively cheap thanks to the ample supply

of power from the hydroelectric stations. After the break with Soviet Union in 1961

China stepped in not least because it needed an alternative source of chrome

previously purchased by Soviet Union and financed the building of new power stations.

This allowed a rapid increase in the production of chrome and copper. A copper wire

and cable factory was built in Shkodër in the North of Albania170.

Obviously despite the negative sides of communism it is important to admit that

in terms of economy the regime led to the development of the country. Still nowadays

a range of people acknowledge the positive side of economy. Many declare “people

did not suffer from the socialist regime, because they had a job, they had food and

their children could attend school without paying, furthermore they are nostalgic as far

as safety is concerned”171. As far as the economy of the country, the established

regime transformed the country and its economy, but as a totalitarian regime

everything was calculated and very well organized in terms of laws or acts that

controlled the process of industrialization and the way the related people to

industrialization acted.

Despite the positive side of the industrialization of the country, which is

acceptable there is one more side of the regime that counterbalances the analysis of

the communist rule. That is the negative aspect. These changes were all attributed to

the development of the country and this was very much admired from the people. But

170 Christopher Cviic, Remaking the Balkans, (London: Pinter Publishers, c1991), 138.

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all this process was characterized from the destruction of the peasantry, ruin of

agriculture, in terms of economic aspect and in terms of political price paid, political

repression, one party state, lack of civil rights and liberties, confiscation of private

property. Taking them all would sort out the negative effect of the regime.

The destruction of peasantry was obvious during the collectivization stage,

1945-1961, although it is very much stressed the volunteer character of

collectivization. This period was characterized from the nationalization of property,

beginnings of the purges for the gulags and the striping off of private property172. The

resistance was punished with various forms practiced from the regime, starting with

imprisonment to the persecution of the entire family. The stripping off the property

especially the livestock and pasturelands form the peasants would also result in

impoverishing them. Alia in his interview admits this point, saying that we were

mistaken in this as this left the peasants in poor conditions, despite the fact that it was

preached that they would get it from the cooperatives. In fact the problem stood in the

urge to fulfill the plan and the warden of the cooperatives sold everything to the city173.

The ruining of agriculture was very much visible in terms of dedicating attention

to industry and the fact that the national incomes coming form agriculture were always

lower. Thus agriculture in 1960 gave 37.6 per cent of the national incomes, whereas in

1970 it was lowered to 34.2 per cent and in 1985 it increased a small percentage

reaching 34.6 per cent.174.

171 H. Ç. Secretary of the Party and Director of the Metallurgical Plant in Elbasan. Interview by theauthor, April 25, 2007, Tiranë, Transcript.172 Ramadan Marmullaku, Albania and the Albanians. (London: C. Hurst & Company, 1975), 125-130.173 Ramiz Alia, ex-President of Albania, Interview by the author, April 27, 2007, Tiranë, tape recording174 Bardhyl Golemi, Vladimir Misja. Zhvillimi I Arsimit te lartë në Shqipëri (The Development of HighEducation in Albania). (Tiranë: 8 Nëntori, 1987), 180.

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When considering the political aspect it is visible the fact that lack of political

pluralism, political repression and the lack of human rights were suffocating as the

leader through other people was controlling the situation. O’ Donnell states in his book

that Enver hoxha knew his ends and the means to achieve them. As such the purges

enabled Hoxha to liquidate any real or imagined opposition to him or to PPSH175.

Consequently no one would dare contradict the regime fearing the purges.

To sum up the industrialization process was profitable for Albania but

simultaneously the way it was processed led to the negative aspect of communism.

175 James O’Donnell, A Coming of Age: Albania under Enver Hoxha, (New York, Columbia UniversityPress, 1999), 197.

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CChhaapptteerr 33:: TThhee TTrraannssffoorrmmaattiioonn ooff EEllbbaassaann dduurriinngg CCoommmmuunniissmm

As I referred to the industrialization process in Albania during communism in a

national level, this chapter focuses on the local level. Thus it is here that Elbasan

comes into the limelight. This due to the fact that Elbasan underwent a total

transformation during communism, thereby becoming the most industrialized city. A

contribution to this was surely heavy industry that the former leaders decided to settle

there. Elbasan was chosen by authorities as a pilot project of modernization due to its

location, population and natural resources.

First, the soil of Elbasan and the other small towns pertaining to it was rich with

various natural resources, and especially coal, chrome and iron in Elbasan176, oil in

Cërrik177, water potentials in Banjë, etc. Second, the its geographical position was

strategically linked to all the other cities of Albania from where it imported some of the

raw materials needed in the Metallurgical Plant. For instance, as Mr. Alia explained,

Elbasan was linked through railway to Pogradec from where it imported pyrites, then to

Durrës from where it imported chemicals and as such the transportation was made

possible at a low cost.

We chose Elbasan because of the working force, the naturalresources, but also due to the strategic perspective. Elbasanwas the one which needed construction, as it had the rawmaterial, or the raw material was near, so for instance we sentpyrites from Pishkash, Pogradec, the chemicals were sentfrom Durrës to Elbasan by train and we did not spendmuch178.

176 Ramadan Marmullaku. Albania and the Albanians, (London: C. Hurst, 1975), 130.177 Miranda Vickers, The Albanians, (London: Printer Publishers, 1995), 195.178 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.Ramiz Alia: E zgjodhëm Elbasanin sepse kishte dhe fuqi punëtore, pra kishte vendin dhe fuqinëpuntore, dhe nga pikëpamja strategjike ishte Elbasani që kishte nevojë pasi lëndën e parë e kishte afërpiritin nga Pishkashi, por kishte nevojë dhe për një lëndë kimikate, nga Durrësi në Elbasan silleshin metren e nuk shpenzonim shumë.

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By 1962, as Mr. Alia asserts, they had built all the railways. Whereas Pipa

stresses that public roads had been added to the existing network along with a

fragment of railroad connecting the capital with the city of Elbasan.179 This made

Elbasan approachable from many cities, where there was the raw material and the

transportation was easy due to the state enterprises, which covered it. Thus the cost of

the product was low and the profit was guaranteed for many industrial state enterprises

and factories. Consequently the geographical position of Elbasan strategically linked

with the other cities through various means of transportation was the other reason

Elbasan was chosen for the settlement of heavy industry.

Third, Elbasan disposed a potential of work force for industrialization. Just

talking about urban population in Elbasan city we can realize that it was increasing

considerably. Thus Derek Hall points out that in 1960 the population number of the city

of Elbasan was 29.800 and in 1970 it increased to 41.700, this only applies the urban

population only180. This is what in the municipality of Elbasan is recognized as being

within the yellow line, that demarcates the city boundary from the village. But these

numbers do not exclude the fact that people living in the villages in the outskirts of

Elbasan did not work in the industrial building, as the cement factory workers were

mostly from the village situated next to it. As seen from the figures, industrialization

led to an increase of the city population. Consequently Elbasan became a clear

example of the impact of communist plans, the most industrial settlement of Albania

due to the working force and the other reasons mentioned previously.

179 Arshi Pipa, Albanian Stalinism: Ideo-Political Aspects, (New York: Columbia University Press, NewYork, 1990), 130180 Derek Hall, Albania and the Albanians, (London: Printer Publisher LTD, 1994), 143

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On the basis of the materials gathered I have argued in this chapter that

Elbasan underwent a total transformation thanks to the dedication of attention on

heavy industry and the settlement of all the heavy industrial branches of industry. I

have divided this chapter into three sub-chapters aiming at demonstrating the

economic transformation of Elbasan.

Consequently the first sub-chapter deals with the economic circumstances of

Elbasan before the communist takeover, where I have introduced the city, revealed the

stratification of the society and the economic circumstances. The second sub-chapter

is concerned with the communist period and the transformation of the city. The main

industrial enterprises and plants in Elbasan during communism are a part of the focus

for this sub-chapter. Additionally, I have concentrated on the outcome of the

communist economic policies implemented in Elbasan. The last sub-chapter is related

to the ways all these transformations were linked to politics and reflected in the media.

Concluding I have sorted out the destiny of the state-enterprises or plants after the

collapse of communism aiming at highlighting the economic improvement Elbasan

reached during the communist period.

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33..11.. TThhee EEccoonnoommiicc CCiirrccuummssttaanncceess ooff EEllbbaassaann bbeeffoorree tthhee CCoommmmuunniisstt TTaakkeeoovveerr

Elbasan is situated in the center of

Albania, and dates back to antiquity, when it

was known as Scampini, one of the first

fortresses built by the Romans. On the

course time, the city overcame different

invasions of Bulgarians, Ostrogoths and

Slavs. Various historical events took place

in Elbasan, but it was always known for the

educational aspect since earlier times,

when several congresses attempting to

settle the Albanian language were held. It

became the center of political resistance as

well, starting from 1914 against the decision

to position Prince Wilhelm zu Wied on the

throne of Albania, and during the World War

as well. But the relevant period for my research is the Anti-Fascist Liberation War,

1942-1945, when Elbasan became the center of resistance due to the forces led by

Enver Hoxha181.

As I will deal with the economic aspect of life, it is of relevant importance to

consider the economic circumstances of Elbasan during the interwar period. What

181 Petro Kito, Elbasani në Luftën për Çlirim, (Elbasan in the War for Liberation), (Tiranë: Mihal Duri,1971), 12

Figure 2: Source: Map in the Documents in theMunicipality of Elbasan

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needs to be stressed about the economic specter is the fact that the Elbasani people

were well known for trading during the interwar period. Anyway the economic

circumstances of Elbasan as in the case of entire Albania before liberation were

desperate. Despite the fact that its objective conditions were very favorable, such as

the naturally prosperous land and a hardworking population, factors that explained its

cultural development since the ancient times, the district of Elbasan, as far as its

economic, social and political circumstances on the verge of the National Liberation

War, was characterized from important feudal debris182. The decay of the latter had

advanced in other Albanian regions faster than in Elbasan where the debris were more

profound183.

During the interwar period, the population was divided into strata in Elbasan in

accordance to their wealth. Thus the ruling class was the estate owners and the

beylers. The beylers would be hit gravely from Zogist regime, but they were still strong

to resist at the time, as they would resurrect during the invasion. The other stratum of

the population of Elbasan before the establishment of communism was the rich

bourgeoisie, composed of the traders who actually had their small establishments.

Middle bourgeoisie mainly engaged in craftsmanship, tailoring and shoemaking

predominated the society and social life in Elbasan184. They played an important role in

employing people in their own private establishments like apprentices, employees, or

as servants as well. The employed in these establishments came from the poor

stratum or from mid-bourgeoisie as well.185

182 Petro Kito, Elbasani në Luftën për Çlirim (Elbasan in the War for Liberation), (Tiranë: Mihal Duri,1971), 15.183 Ibid. 12.184 Ibid.12-23.185 Ibid.

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But what were the beginnings of industrialization in Elbasan? The industrial

development began in the Zogist period when tobacco and alcohol beverage factories

were built and went on in the communist period.186 The period of Zog was the first step

of industrialization for Elbasan due to the fact that in 1913-1914 corn was the main

crop production of the zone and industrialized goods were mainly imported from other

countries. From 1914-1924 the process of partition of the land properties of the

Elbasani beylers giving the first signs of industrialization and controlled economy187.

Before the communist takeover Elbasan had progressed to some extent in hydro-

energy as well. Thus Edwin E. Jacques argues in his book that one of the testimonies

of this last event claims that they would:

never forget the screams of delight rising and falling all overthe city of Elbasan as the electric street lights were turned onand off while being tested for the first time one evening in1934188.

It would be of relevant importance to emphasize the fact that Elbasan was a war field

and consequently most of the factories stopped working and the industrial output was

menial.

Taking into account the economic circumstances of Elbasan as the entire

Albania’s ones, the communist government implemented various economic policies,

characterized from the distributive character. These policies were mostly focused in

the construction of heavy industry and the decision taken for Elbasan aimed at

specializing the city mainly in heavy industrial aspect. The reason for the development

of heavy industry as it was claimed in the media from the leaders was as Schnytzer

186 Petro Kito, Elbasani në Luftën për Çlirim, (Elbasan in the War for Liberation), (Tiranë: Mihal Duri,1971), 55.187 Ibid. 14.188 Edwin E. Jacques, The Albanians: An Ethnic History from Prehistoric Times to the Present,

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argues that in reality the urge of heavy industry was related to the economic

independence of the country189. Adding to this the desires of the leaders to exploit the

Albanian minerals and the hope in the progress of Albania. That is what the party

members always claimed when discussing industrialization. The development of

Elbasan was attributable to this reason.

After the establishment of the communist regime in Albania its political direction

would lead to the transformation of the city and the entire district as well, meaning a

conglomerate of small cities, depending upon Elbasan economically and

administratively and being classified as constituents of Elbasan.

(London: McFarm, 1995), 220-250.189 Adi Schnytzer, Stalinist Economic Strategy in Practice, The Case of Albania, (London: OxfordUniversity Press, 1982), 89.

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33..22.. TThhee CCaassee ooff EEllbbaassaann aafftteerr tthhee CCoommmmuunniisstt TTaakkeeoovveerrEEnnvveerr HHooxxhhaa:: In this Five- Year our industry

will be empowered more. TheMetallurgical Plant of Elbasanwill start in a wide range theproduction, which by melting ourminerals, will give to thefatherland apart from cast-ironand steel of high quality, nickeland cobalt, which have a greatvalue in the world’s market aswell.190

In the report to the seventh congress of PPSH (Partia e Punës së Shqipërisë-

Albanian Labor Party) Enver Hoxha launched a comprehensive plan for the

industrialization of Elbasan. In the following, I argue that Elbasan underwent a total

transformation and from an agricultural city it became the most industrialized Albanian

city, encompassing almost all types of industry. Elbasan is a clear example of a

flourishing economy under communism thanks to the particular attention dedicated to

the development of heavy industry and a declining economy under the transition period

to democracy and it is still undergoing the same decline. This was due to the fact that

the state sponsored the establishment and development of state plants, factories and

enterprises. They were vital as they supplied the entire Albania with goods, but they

ceased acting as such after 1991, as a result of the collapse of communism.

190 Enver Hoxha. Raport në Kongresin VII të PPSH, (Report in the Seventh Congress of PPSH), (Tiranë:Shtëpia Botuese “8 Nëntori”, 1976), 49.Enver Hoxha: Në këtë pesëvjeçar industria jonë do të fuqizohet shumë. Do të fillojë në shkallë të gjerënga prodhimi kombinati metalurgjik i Elbasanit, i cili duke shkrirë mineralin tonë, do t’i japë atdheut,përvec gizës e çeliqeve të cilësive të larta, edhe nikel e kobalt, që kanë vlerë shumë të madhe dhe nëtregun botëror.

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Administrative Division of Elbasan

Commune

Municipality

City

District

The administrative division of Albania is reflected in the chart

below. Thus, in accordance to the division of that time, it was named

District of Elbasan (Qarku i Elbasanit) and it included the city of Elbasan

(Rrethi i Elbasanit) and the other small towns like Peqin, Cërrik, Gramsh

and Librazhd respectively maned as Rethi i Peqinit, Rrethi i Cërrikut, Rrethi i Gramshit,

Rrethi i Librazhdit). But each of the cities consisted of the main town and the villages in

its outskirts. The governing unit of the villages was the commune and in the case of the

towns it was the municipality. The Municipality of Elbasan was the coordinator for all

the other cities including their villages. Hence all the small towns surrounding Elbasan

and the respective villages were regarded by the socialist government as part of

Elbasan. Consequently the decisions taken were for all the constituents of Elbasan.191

191 Municipality Documents, Elbasan.

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Figure 3: Administrative Composition of ElbasanSource: Map in the Municipality of Elbasan

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As all the other cities of Albania, Elbasan was an agricultural city as well. Thus

the industrialization process started with collectivization. In a report the secretary of the

Party for Elbasan, Mr. Azen Kërxhaliu, asserted:

Collectivization opens the way to the entrance of the new anddevelopment. The beginnings of collectivization in the villagesof Elbasan has been one of the most marked events in theirentire life192

By the term development, he meant industrialization as the Albanian government was

attempting to copy the same models of economic development of Soviet Union.

The outcome of the regime’s plans was the creation of an industrialized town,

Elbasan whose climate and mineral resources facilitated the plans of the communist

regime to concentrate the majority of industrial branches in it and in its surrounding

regions. The desire of the leading forces was proclaimed in national newspaper, organ

of PPSH. But in reality the progress of Elbasan did not imply just its development,

meanwhile the entire district, including the villages. Thus referring to two villages of

Elbasan the leaders announced:

Balëza and Bradashesh will be well-known and Elbasan willbe the center of industry…The subject of the talk of people inthe bars will not be about wheat, but about iron, petrol andpeople’s horizon is growing.193

But when did the process of industrialization begin for Elbasan?

Whenever discussing industry in Elbasan, the common association is with the

Metallurgical Plant. The third five-year plan denotes the beginning of heavy industry.

The special credentials given to heavy industry led to the construction of the heavy

192 Azen Këxhaliu, “Elbasani në Vite” (Elbasan in the course of Years) in Shkumbini, July 4, 1967, 2.Azen Këxhaliu: “Kolektivizimi hap rrugën për futjen e së resë përparimtare. Futja në rrugën ekolektivizimit të fshatarësisë të fshatrave Elbasanase ka qenë një nga ngjarjet më të shënuara gjatëgjithë jetës së saj.”193 Zëri i Popullit, “Ndryshime që nuk do t’i bënin as Shekujt” (Changes that neither Centuries could do),February 25,1950,1-3

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industry plants during this period. The construction plans for this period grew 16 per

cent compared to the first five-year plan,

the yield increased 44 per cent, the cost

decreased of 16 per cent194. The

construction of the Metallurgical Plant

commenced by this time and it was

supposed that it would end up in 1962.

Actually it did end up in 1962 but it could

not function in its full potential by 1962,

due to the political split with the Soviet Union. The realization of this plant was made

possible by Albania’s new privileged economic and political relations with China. The

aid from China consisted in technical help and expertise: “the Chinese specialists were

hand in hand with the Albanians for the construction of the metallurgical plant, sharing

the responsibilities of the work with the Albanian workers. This was a testimony of the

great friendship of the two peoples and our parties.”195Heavy industry was very much

reflected on the metallurgical plants and the one of Elbasan is the most well-known

one named as the “Steel of Party”196. Thus the leader of the country declared the plan

of construction in the Congress as it further on follows:

The Metallurgical Plant that will be built in Elbasan is agigantic work that will strengthen the independence and

194 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli, Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8 Nëntori, 1980), 27195 Aleko Hysi, “Elbasani i Ri në Marshimin e madh Socialist”, (The new Elbasan in the big SocialistMarch), Zëri i Popullit, June 9, 1966, p. 2-3196 Enver Hoxha, Raport në Kongresin e VI të PPSH, (Report in the Sixth Congress of PPSH), (Tiranë: 8Nëntori), 67

Figure 4: Metallurgical Plant in Elbasan(incomplete)

Source: Municipality of Elbasan Documents

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the self-action of our economy, will provide the necessary rawmaterial for the development of mechanic industry and for theprogress in the future towards the production of the machinery,will enforce very much the material basis of the construction197.

Actually the construction of the Metallurgical plant was interrupted due to lack of funds

and

it was finished with the cooperation of the

Albanian government and China. The plant

was built according to the “Stalinist heavy

industrialization and dogmatic notions of self-

reliance”198. The Metallurgical Plant in

Elbasan was regarded as the “grandiose

deed,” attributed to “people’s work.”

Subsequently Mr. Enver Hoxha declared in order to praise in this way the workers’

outcome:

Thanks to the golden hands, to the decisive will andcleverness of our workers, the biggest metallurgical plant ofElbasan started to give the first steel in the history ofAlbania.199

The outcome of this plant for Elbasan would be its economic growth as well apart from

the entire country’s profits.

197 Ibid.Enver Hoxha: Kombinati Metalurgjik që do të ngrihet në Elbasan është një vepër gjigante, e cila do tëfuqizojë pavarësinë e vetveprimin e ekonomisë sonë do të sigurojë në vend lëndën e parë tëdomosdoshme për zhvillimin e industrisë mekanike dhe për kalimin në të ardhmen në atë të prodhimit tëmakinave, do të forcojë shumë bazën materiale të ndërtimeve.198 Derek Hall, Albania and the Albanians. (London: Printer Publisher LTD, 1994), 405.199 Enver Hoxha. Raport në Kongresin VII të PPSH, (Report in the Seventh Congress of PPSH), (Tiranë:Shtëpia Botuese “8 Nëntori”, 1976), 4Enver Hoxha: Me duart e arta, me vullnetin këmbëngulës e mendjen e mprehtë të punëtorëve,kombinati i madh metalurgjik i Elbasanit filloi të derdhë çelikun e parë në historinë e Shqipërisë.

Figure 5: Metallurgical Plant (completed)

Source: Documents in the Metallurgical Plant

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The population of Elbasan continued to increase in accordance to the economic

development of the city. The Metallurgical Plant started to attract most of the people,

who settled as well in Elbasan, without forgetting the ones who lived in the outskirts of

Elbasan, especially in the villages next to the Metallurgical Plant. Thus during this

period the population of the city grew 38.3 per cent.200 Derek Hall gives further

accounts as far as the population number is concerned.

Year Population1938 12.7001945 34.3001960 29.8001970 41.7001979 61.1001990 83.300

Table 6: Population of Elbasan201

Furthermore it employed a great number of people and the majority of the plants

depended on it completely. People from other cities were deported to Elbasan from the

regime to work in the Metallurgical Plant and just in 1974 there were 859 workers from

other cities and they were engaged as simple worker, mechanics, plumber, solders,

and engineers202. The entire plant was composed of various yards. In 1966-1967 the

following yards had the respective number of workers:

Yard Number of WorkersConstruction Yard No. 1 1,113Construction Yard No. 2 3,202Cement Factory 1,617External Yard 701Black Metallurgy Yard 723

Table 7: Number of Workers in the Metallurgical Plant in 1966-1967203

200 Ramadan Marmullaku. Albania and the Albanians, (London: C. Hurst, 1975), 130201 Derek Hall, Albania and the Albanians. (London: Printer Publisher LTD, 1994), 405.202 Documents in the Municipality of Elbasan about Metallurgical Plant, 1974203 Documents in the Metallurgical Plant in the Municipality of Elbasan, 1966-1967

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As seen from the table this plant employed a big part of the population of Elbasan.

Whereas according to Mr. Biba, who worked in the Metallurgical Plant from 1970, there

were 12,000 people working in this plant204.

As always there was evident one main problem, that of the technical training of

the workers. Consequently as in the other cases the party would project the training of

workers. Various professional schools were opened for the young generation to

develop their professional skills, in order that when everyone who would see a worker

of metallurgy and his friends in uniforms everybody could think that they were the

future of the industry of black metallurgy205. The 1970 would mark the completion of

the specialization in a high degree of all the workers206. The second phase of this

production in this plant was related to the embezzlement of the processes of work207.

Due to this specialization of the workers the yard of the steel forging was completed.

This yard was composed of two assembly lines, which would also get engaged in steel

rolling in thin strands planning imported to add some more steel products, such as

round rods, previously imported208. Thus the productions of this plant would

discontinue the importing of these elements209.

A special role in the development of the Metallurgical Plant played the inventors

of the rationalizations. As the main aim was the improvement of the work and

moreover the enlargement of the production, the workers and the engineers got

204 Mr. Kozma Biba, Director of the Metallurgical Plant, for the correspondent of BBC, May 19, 2005205 Aleko Hysi, “Elbasani I Ri në Marshimin e madh Socialist”, (The new Elbasan in the big SocialistMarch), Zëri i Popullit, (Tiranë: June 9, 1966), 2-3206 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8Nëntori, 1980), 43-44207 Aleko Hysi, “Elbasani i Ri në Marshimin e madh Socialist”, (The new Elbasan in the big SocialistMarch), Zëri i Popullit, (Tiranë: June 9, 1966), 2-3208 Ibid.

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engaged in inventing rationalizations. In accordance to the Act 330 of Albanian

Constitution:

Rationalization is the solution that improves the technique ofproduction, increases the volume of production, its variety,produces new output, increases the yield and decreases thecost of the product. Rationalization is also the solution thatimproves the organization of the work and the administrationof economy, when it led to a great economic outcome. It is notcalled rationalization the fulfilling of the appointed tasks onbasis of the approved plans or of the tasks given from theenterprise, institution or organization210.

In order that the incomes of the Metallurgical Plant increased its workers and

engineers attempted to improve the processes of work through various rationalizations.

It is worth mentioning that in the third year plan there were 8,869 proposals for

rationalizations from them tens of spare parts, which were previously imported, had the

nation seal saving to the people 5 million leks211. Whereas during the fourth five year

plan the re were 1632 proposals from which just 1632 were valuable for effectuation212.

By 1980s Albania was processing most of its minerals and producing its own

machinery and industrial equipment including factories and plants213.

This plant provided steel and nickel for the entire Albania and thus it was the

main provider for may other factories and many people were employed in this plant

209 Ibid.210 Byroja Politike pranë Këshillit të Ministrave, Kodet e Republikës Popullore Socialiste të Shqipërisë,(Codes of the Socialist People’s Republic of Albania), (Tiranë: Mihal Duri, 1982)Neni 330: Racionalizim quhet zgjidhja që përmirëson teknikën e teknologjinë e prodhimit, që shtonvëllimin e prodhimit, të llojshmërisë, nxjerr prodhime të reja, rrit rendimentin e ul koston e prodhimit.Racionalizim quhet gjithashtu, zgjidhja që përmirëson organizimin e punës dhe administrimin eekonomisë, kur ka sjellë dobi të madhe ekonomike. Nuk quhet racionalizim zgjidhja e detyrave tëcaktuara në bazë të planeve të miratuara ose porosive të dhëna nga ndërrmarja , institucioni oseorganizata211 Aleko Hysi, “Elbasani i Ri në Marshimin e madh Socialist”, (The new Elbasan in the big SocialistMarch), Zëri i Popullit, (Tiranë: June 9, 1966), 2-3212 Ibid.213 Elez Biberaj, Albania, A Socialist Maverick, San Francisco: Westview Press, 1990, p.135

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Administrative Structure of Metalurgical Plant

Vice-Director

Main Engineer

Director

controlling the domestic production. “Annual output of nickel outraged 7200-9000 tons

in the 1980”214.

As all the state owned, the metallurgical plant had its own administrative

structure approved from the government. One of the directors of the Metallurgical

Plant, I interviewed asserted:

…the structure was approved from up, the personnel wasappointed from up well and we had to look after the plan, themethods, the expenditure of the plant, and to fulfill the planswe were sent from the State Planning Commission. We wouldbe evaluated when overfilling the plan and that was ourtarget215.

Thus the administrative structure was the following:

Depending on this, there were other organisms that controlled each of the processes

of work. These were the other administrative organism according to the

Council of Ministers216:

1. Technical Branch

2. Planning and Organizational Branch

3. Financial Branch

4. Cadres Branch

5. Administrative Branch

6. Secretary

All these actors cooperated together for one aim, the fulfilling and overfilling of the

plans in order that the incomes of the plant could increase.

214 Raymond Zickel, Albania, a Country Study: Area Handbook Series. (Washington DC.: Library ofCongress Press, 1994), 200-220215 F.H. ex-Director of the Metallurgical Plant in Elbasan, interview by the author, April 15, 2007,transcript, Tiranë.216 Council of Ministers, File I01965, Archives of PPSH

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On one hand this plant led to the development of Albania and especially of

Elbasan; on the other hand it had some side effects in terms of expenditure to keep it

functioning and the atmospheric pollution. As far as state expenditure is concerned for

the functioning of the Metallurgical Plant the most important one was related to the

electricity used from the “13 million kWh that Albania produced per day the

metallurgical plant of Elbasan exhausted 1 million kWh per day, that was a huge

expenditure”217, as Mr. Alia confirms. Nowadays Alia regards the construction of the

Metallurgic Plant and also the development of heavy industry as a mistake of the

regime.

Thus as I can say, we have made mistakes in industry, themistake is the heavy industry as it was not essential for us.We could have developed more light industry, as we did notneed heavy industry, but no at that time it was a mania tohave heavy industry. Why did we need heavy industry, wewere a small country, we did not produce cars or tractors, butwe hoped we could. Our mistake was heavy industry, as theindustrialization of Albania was right218.

The other negative side of the metallurgical plant is related to the extent of air pollution

in Elbasan and in the areas next to it. Especially in the surrounding Bradashesh valley

the air pollution degree is pretty high, as it was denied access to the original plans and

to the pollution control technology to the majority of the people and to the workers as

well219.

217 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë. “ai kombinat neve na merrte 1 milion kilovatorë energji elektrike nga 13 milion këorë në ditë që neprodhonim, edhe sot, se ajo sasi që ne prodhojmë në hidroçentralet tona është e vogël, pra nga 13milion që ne prodhonim 1 milion na e merrte vetëm kombinati metalurgjik”218 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.“pra si të thuash, kemi bërë gabime në industri, aty e kemi bërë gabimin te industria e rëndë se ne snaduhej, mund të kishim zhvilluar më shumë industrinë e vogël, se sna duhej e ne skishim atëherë, ç’naduhej neve industria e rëndë, po ajo atëherë ishte si mani të kishim një industri trë rëndë, po can duhejne ajo ne ishim një vend i vogël se ne sprodhonim makina, traktorë jo, po hë se i prodhojmë dhe ne poç’prodhonim ne? Gabimi jonë ishte vetën industria e rëndë se industrializimi i Shqipërisë ishte i drejtë”219 Derek Hall. Albania and the Albanians. (London: Printer Publisher LTD, 1994), 410

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Elbasan did not become one of the most industrialized cities only due to the

Metallurgical Plant but also thanks to other branches of industry, such as heavy

industry, hydro-energy, refineries, brick kilns and cement factory. “The regime’s rapid

industrialization policy had led to the creation of the relatively modern multi-branched

industry, which by 1985 was generating more than 40 per cent of national income”220

and quite all the branches of industry had their basis in Elbasan as well.

Which were the main factories and enterprises in Elbasan functioning during

communism and what was their potential? Elbasan’s soil was rich of chromites and this

gave rise to the Ferrochrome Plant, which struggled to walk on the same footprints of

the Metallurgical plant and it succeeded during communism. It employed a

considerable number of Albanians and the workforce controlled the domestic

production. The beginnings of this plant’s functioning date one year after the

metallurgical ones, as due to the practice that the Albanian personnel gained from the

Chinese. First it commenced as a yard of the Metallurgical Plant but one year later it

had its own building. The first examinations of the ovens in the Ferrochrome plant were

completed in a few days and the deed was successfully put exploitation221.

The other example of prosperity in the field of industry was the Cement Factory

in Elbasan, which produced the highest amount of cement in the entire Albania and it

became a source for the other cities. The Cement factory was the product of the fourth

five-year plan. In 1979 the cement factory in Elbasan started functioning in full

220 Elez Biberaj, Albania, A Socialist Maverick, (San Francisco: Westview Press, 1990), 180221 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8Nëntori, 1980), 47

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capacity222. As the other factories of the time its number of workers was growing and

just in 1966 there were 1617 workers223.

The Brick Kiln Factory was an important budget-raising unit in the period of

communism. It employed a wide range of people,224 and supplied various plants and

cities, as there were very few brick kiln factories in Albania during communism. In

reality the development of industry reveled the necessity of developing construction

industry225. Thus the necessary was supplied from the factories within Albania.

The other contributive plant to the constructive industry was the wood factory

“Nako Spiru” in Elbasan built in the third five-year plan. To this, a new factory of fiber

slates was added in 1976, which was supplied with modern technology for the time.

Additionally all the processes of work were automatic226. The appointed structure of the

Wood Plant was the following:

1. The Branch of Wood Delivery

2. Mechanic branch

3. The Metallic Production Branch227.

Elbasan became the center of industry and as such the Albanian Electric Enterprise

(KESH-Korporata Elektro-energjetike Shqiptare). For Elbasan, the communist period

meant economic growth and increasing importance in Albania, as the city was the

most industrialized one KESH was supposed to provide electricity for the developing

222 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8Nëntori, 1980), 45223 Documents in the Cement Factory, Essential Register of Workers, 1966224 ibid.225 Vladimir Misja, Krijimi dhe Zhvillimi i Industrisë në RPSH (The Creation and Development of industryin People’s Republic of Albania),(Tiranë: N. Frashëri, 1963), 55226 Bashkimi, April 25, 1976227 J.B. ex-Minister of Industry of Albania, interview by the author, April 20, 2007, transcript, Tiranë.

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industry in Elbasan, and the regime did not want to have losses during the

transportation of t electricity from other cities. Hydro energy became important and

developed thanks to the water potential, high-tension transmission lines from Elbasan

to all Albania228. It was built in 1950 and it remained important for the period of

communism. Its importance was much visible in terms of the electricians working in

KESH for any necessities from the power plant in Banjë, in the surroundings of

Elbasan229. The administrative structure was composed of the director, the main

engineer and the other branches as juridical, economic, division of delivery, division of

production and division of controlling230.

Another progressive branch of industry during communism was the Oil Refinery

Factory. It was one of the most important potential natural resources of Albania and it

helped in making good use of these resources. The main oil refinery was situated in

Cërrik. As some industrial works the refinery as well was an outcome of the fourth five-

year plan. In the first years the country mainly imported or used to buy the equipment

to use in the refinery, thus the expenses were high, until Albania started producing

some by itself231. The Albanian government did not hide this fact, especially when

booking a probe, where the leader of the country did ask from the specialists to think

about the importance of this equipment before booking it232. Surprisingly, he always

used to praise the workers and in this time as well. Mr. Hoxha always showed respect

228 Documents in KESH229 Council of Ministers, File E0581, Archives of PPSH.230 KESH, 1966.231 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli,Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8Nëntori, 1980), 45.232 V. Misja, Baza Materialo-Teknike dhe Efektiviteti i Investimeve në Indsutri (The Material-TechnicalBasis and the Affectivity of Investments in Industry), (Tiranë: Shtypshkronja e re, 1983), 22

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towards workers, in a carefully orchestrated propaganda. In this meeting held in 1970,

he sends his congratulations and best regards to the workers of the refinery233.

Përrenjas, situated in the surroundings of Elbasan was the center of mines and

railways. Thus mines developed to some extent but they were never at the same

degree of the other mines of the country. The railways of Elbasan-Përrenjas were

mostly built through volunteer work in order to make the connection of Elbasan to the

other cities, especially Pogradec from where the import of pyrites would be done234.

The other direction of the Albanian State in

terms of the development of industry was also

focused on the armament industry and Elbasan

could not escape without one being constructed

in its territory. In accordance with the ideology

part of which was the protection of the country

from the enemies, various armament factory.

One of the most important was settled in Mjekës,

a village in the outskirts of Elbasan. It functioned in full capacity supplying with arms

the military unit of Mjekës and the other ones in republic level235. The existence of this

factory was essential during communism. As seen it was equipped with modern

233 Enver Hoxha, Vepra 66 (Work 66), (Tiranë: Shtëpia Botuese “8 Nëntori”, 19780, 78.234 Enver Hoxha, Raporte e Fjalime 1974-1975, Mbi Revolucionarizmin e Mëtejshëm të Partisë dhe tëGjithë Jetës së Vendit (Report and Speeches 1974-1975, on the Further Revolution of the Party and theEntire Life of the Country), (Tiranë: Shtëpia Botuese “8 Nëntori”, 1977), 7.235 Anthim Konomi, Irfan Veteriku, Egon Gjadri, Stavri Naço, Dhori Guri, Agim Shehu, Riza Minarolli, Kosta Goga, Ndërtimet në Shqipërinë Socialiste, (Construction in Socialist Albania),(Tiranë: 8 Nëntori, 1980), 27.

Figure 7: Armament Factory in Mjekës.

Source: Documents in the Municipality ofElbasan

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machinery and the work was divided in accordance to the specialization of the

workers236.

In line with the industrialization plan for the city, Elbasan was well connected to the

other areas that were economically related.

236 Ibid.

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33..33.. TThhee PPoolliittiiccaall RReefflleeccttiioonn ooff EEllbbaassaann’’ss IInndduussttrriiaalliizzaattiioonn

The process of industrialization of Elbasan was amply reported in the

communist media. The beginnings of the industrialization project for Elbasan would be

notified as “a big socialist march” or “the bright perspectives.”237 The same happened

in all the other enterprises or plants. Apart from this, the dedication of the people who

helped in the construction and the beginning of these plants. The First Secretary of the

Party Committee of the city asserted that:

The Elbasani intelligentsia has always answered to the call ofthe party to serve to the people where the interests of thefatherland have requested them.

Simultaneously the role of the party is overestimated. Thus the party played the role of

the mobilizer of the people and simultaneously the role of the educator of the people.

The claim that:

The party has pasted with special consciousness, whoprioritize the interests of the fatherland and socialism238.

The case of the metallurgical plant was specially heralded as the “never heard

industry.”239 Furthermore the information given to the ordinary people about the

economic development of Elbasan was always present in the media including even the

production range and the new plans for the metallurgical plant. Surely even the

metallurgical plant could not be separated from the political development of Albania as

it was preached by the leaders. Consequently the development of Elbasan and the

metallurgical plant would be contextualized in the framework of the “political revolution

of Albania:”240.

237 Aleko Hysi, “Elbasani i Ri në Marshimin e madh Socialist” (The new Elbasan in the big SocialistMarch), (Tiranë: Zëri i Popullit, June 9, 1966), 2-3.238 Ibid.239 Ibid.240 Aleko Hysi, “Elbasani i Ri në Marshimin e madh Socialist” (The new Elbasan in the big SocialistMarch), (Tiranë: Zëri i Popullit, June 9, 1966), 2-3

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This is the big socialist march of new Elbasan in thisrevolutionary pulse when our party goes to the elections withgreat victories…241

The rationalizations were the other topic to be revealed to the people in order to testify

the economic transformation of the city and its areas. Special attention was paid to the

volunteer work of students or high school children who were volunteering in the

construction of the cement factory. The young students who came just to observe the

process of building an enterprise or a factory was not left aside, because this

demonstrated the importance that the country for the future generation242

The most important news to be revealed remained always the capital gained in

one specific period of time. This was encouraging for the Albanians. The completion

and overfilling of the norms was very much discussed about. For instance “the norms

were completed 112 per cent and the yield was 107 per cent”243 in the case of the

cement factory.

The regime was always pretty much concerned in controlling how the process

went. Thus the meetings of the directors and engineers in order that they could report

about the achievements of the enterprise. Furthermore the praising of some of the

workers was also evident in such meetings where stimuli were delivered to them.

The most striking were the comparisons done Elbasan every each

anniversaries. The contrast was pretty clear and the leaders also the directors of the

plants and factories were very much appreciated for this change. Despite, as one of

241 Ibid.242 Ibid243 Zëri i Popullit, 1964

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the directors of the metallurgical plants affirms, the directors were very passive in the

processing of the work244.

The premises of the metallurgical plant were to such wide extent that the

profiles of the products were completely published in the media and in the reports in

schools or at work in order that people could have accessibility in all the projects

implemented245.

The city was supposed to develop every year and as such various other

initiatives were taken and published in all the media. In reality there was a wide range

of economic progress in quite all the areas falling under the district of Elbasan246.

Simultaneously with the economic progress of Elbasan, it became the example

of the other cities, and it was prioritized as far as budget sharing per year. Thus this

prosperity in economic terms led to the increase of the role and image of Elbasan as

well, breaking the stereotype of an agricultural city, or as a museum city. At the same

time, it traced back in the history of Elbasan as it was always very well-known in

trading. This period was also preached as a return in identity, an identity lost during the

invasions, as the secretary of the party asserted247. It is pretty clear that the

development of Elbasan was always related to the political aspect of the entire country

and the plans taken for it in order that it could develop.

244 H.F. ex-Director in the Metallurgical Plant in Elbasan, interview by the author, April 25, 2007,transcript, Elbasan.245 Bashkimi, 1978.246 Ibid.247 Zeri i Popullit, 1980.

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Conclusions:

An integral part of the Soviet-dominated communist block, implemented the same type

of economic policies as the Soviet Union, transforming the Albanian economy into a

“copy” of the Soviet one. Following the example of Magnitogorsks in Soviet Union,

Elbasan was transformed economically into the most industrialized city of Albania. As

a result, Elbasan developed all branches of industry, including heavy industry, energy,

mines, railways and constructive industry. State directed plants and state enterprises

were spread all over Elbasan. Surely, the socialist industry benefited the economic

development of Elbasan. Yet, at the same time, the rapid and forced industrialization of

the city had numerous negative sides, manifest at national level as well as at local

level. The national one was related to expenditures, whereas the local one to

environment and health.

The collapse of communism in late 1990 beginning of 1991 led to the change of

the political system, which brought a completely different view of Elbasan. It led to

economic decline and a high rate of unemployment. This conclusion comes out of

empirical facts. The new regime’s motto was “Let’s destroy the old.” For the new

leaders, the old meant everything including industrial works, as a result increasing

unemployment in Albania.

But what happened to the main industrial works in Elbasan? Opening up its

borders after a period of unprecedented isolation, post-communist Albania launched

an ambitious program of economic development attracting foreign capital.248 I this

context, the industry of Elbasan was either privatized by foreign capital and private

248 Biberaj, Elez. Shqipëria në Tranzicion, (Albania in Transition), (Tiranë, Ora, 1998), 291

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individuals or completely closed down, with hard social consequences for the survival

of the local population.

The Metallurgical Plant was privatized in 1991 by a Turkish company, which

reduced the number of workforce; moreover, although it promised to apply some filters

to reduce the air-pollution, the new owners did not deliver on their promise.249 The

same happened to the Wood Factory, which was quite efficient during communism,

when wood was the most used energy resource. After 1991, the population used

preponderantly electricity and gas, and they abandoned the use of wood. The factory

was completely destroyed, while workers became unemployed after its destruction and

authorities did not pay attention to it.250

The cut off of the energy and the economic chaos in 1990 led to the closing of

ferrochrome enterprises in Elbasan and Burrel. The outcome was similar to that of the

Metallurgical Plant: privatization and a reduction of the workforce, which led to the

increase of unemployment in Elbasan after 1991.251 The cement factory was privatized

by a Lebanese company, which led to unemployment due to the policies implemented

by the new owners. The state collects taxes and treats it as the other business

enterprises.252

The Brick Kiln Factory is at present managed by an Albanian entrepreneur. He

has employed a small number of workers and they work more but the payment is

lower. Mainly the workers are his acquaintances.253

249 Documents in the Municipality of Elbasan250 Ibid.251 Ibid252 Ibid.253 Ibid.

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KESH underwent the same changes as all the other industrial state enterprises.

As a conclusion it was privatized and in the present days it is an anonymous company,

privatized in shares by a wide number of people, mainly workers who were previously

employed in the enterprise. The only difference between KESH and other state owned

factories and plants; the Electric Enterprise is still functioning; though in a poorer state

compared to the period of communism254. The refinery of Cërrik ceased to exist, the

same happened to the power plant in Banjë255. The same happened to the armament

factory in Mjekës, which ceased to exist as well and the equipments or the arms that

remained were spoilt and in 1997 due to the crisis various International Organizations

sent representatives to help the Albanian leaders to destroy their arms256.

The speeches of the governments have always claimed an economic and

political development of Albania but in reality something else has happened during

these years of political pluralism. Mr. Stefani, a political analyst, actually sees no

change in terms of the political issues related to economy as well. Thus he states:

The dictatorship established from Enver was flipped but theorder “The party is me” survived infiltrating in the Albanianpluralism257.

The Albanian politician Pëllumbi conducted research on the case of a city, Laç

and he applies this pattern approximately to the other cities as well. His data about

1992 are: “21.700 unemployed people, from 26 enterprises 18 do not function at all,

over 400.000 active forces in the entire country, cannot work, 350.000 people are

immigrants in the world and over 300 people knock on the doors of the Directory of

254 Documents in KESH.255 Andrea Stefani. Albanistan. (Tiranë: Toena, 2005), 250-260.256 Koha Jonë, 1997.257 Ibid., p. 133.Diktatura enveriane u përmbys por urdhëri “Partia jam unë” mbijetoi duke u infiltruar në pluralizminshqiptar.

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Immigration”258. Çupi in his book claims that every year that passes returns back in the

past. He does not see any development from the establishment of the new regime, as

the economic circumstances are growing worse and the intellectuals stay away from

the parliament259. Mr. Alia himself in the interview I conducted with him evaluated the

achievements of the communist government in the 17 years after the communist take

over (1945-1962) and compared them to what the democratic governments

accomplished since the communist collapse (1990-2007).260 Until 1962 the

achievements of Hoxha’s government were pretty high, there was electrification of the

entire country, various heavy industrial works had started work in full or partial

capacities, eradication of illiteracy, railway construction was finished, mining was

developing and they could not speak about unemployment as the government did not

allow this. Nowadays according to him nothing new has been achieved.261 The post-

communism Albanian governments are still working with what the regime left them. He

still considers the necessity of the previous works, such as the power plant in Banjë as

a profitable one due to the low loss of energy.

It needs to be pointed out that Albania was not ready for the democratic regime to be

established, as the Albanians themselves were not prepared for such change. Thus

Gramoz Pashko, a deputy of the Democratic Party in Albania, also the formulator of

the new economic system, observing the Polish models which as characterized

according to him from privatization. Thus a total privatization of the enterprises would

be pursued. The result was that the country’s 2000 small enterprises were sold to their

258 Servet Pëllumbi, Dritëhije të Tranzicionit (Gloomy Light of Transition), (Elbasan: Seiko, 2000),149259 Frrok Çupi, Kthim në Vitin ’91 (Return in the Year ’91), (Tiranë, Dita, 2000), 136260 Ramiz Alia, ex-President of Albania, interview by the author, April 27, 2007, tape recording, Tiranë.261 Ibid.

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employees by 1991262. These employees in reality were not trained at all to manage a

business as a result they failed increasing the number of unemployment. The other

plans coming from the democratic leaders to be accomplished were the following:

1. cause fast reform towards market economy2. discontinue the pension payment of 80% to the

unemployed3. assure emergency food, electricity, and water supply to

people4. privatize the enterprises now owned by the state5. complete the distribution of collective land6. encourage the creation of new private firms and foreign

investments and joint ventures7. lift controls on retail prices, excepting only electricity, oil

production and telecommunication8. liberalize foreign trade9. integrate Albania into European political and economic

structures263

But in reality they did not succeed in fulfilling all these plans consequently, the pension

payment of the unemployed stopped being distributed in 1993, food, electricity, water

is still a current issues, when the electricity and the water enterprises are privatized,

thus the state has no say. Albania is supplied with electricity just from three power

plants, Fierza, Koman and Vau I Dejës, and the three of them are under the level as

far as the level of water is concerned. As a result Albania undergoes still limitations of

electricity supply264. The only stratum that profited form this were the peasants,

although they are facing the high prices of cultivating the land. Nevertheless they

started to profit since the rule of Alia.

Furthermore a quick balance of what happened to entire Albania that is

applicable for Elbasan as well after the communist regime would be as Champseix

admits in her book, the exode of Albanians would make 200000 –350000 Albanians

262 Derek Hall, Albania and the Albanians, (London: Printer Publisher LTD, 1994), 222.263 Edwin E. Jacques, The Albanians: An Ethnic History from Prehistoric Times to the Present, (London: McFarm, 1995), 699.264 “Kufizimet e thella të Energjisë Elektrike”, in http://www.lajme.net, (last visited June, 2, 2007)

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fledding from Albania from 1991-1992 from 3 million and a half of the entire

population265. The fact numbers of these people fledding from Albania do not

demonstrate amelioration of the economic circumstances of Albania.

David Vaughan-Whitehead gives some data in his book concerning the

economic development of Albania during these years. Despite the change the data are

not that promising. According to him Albania did not have success in establishing

macroeconomic condition revealing everything in the table266:

Main Economic Indicators (1990-1996)1990 1991 1992 1993 1994 1995 1996

EconomyGDP -10.0% -28.0% -7.2% 9.6% 9.4% 8.9% 8.2%Industrial Output -14.2% -42.0% -51.2% -10.0% -2.0% 1.0% 13.6%AgriculturalOutput

-5.4% -17.4% 18.5% 10.4% 10.3% 10.6% 3.0%

Table 8: Economic development of Albania (1990-1996)

265 Elisabeth et Jean-Paul Champseix, L’Albanie ou la Logique Désespoir, (Albania, the place of theDesperate Logique), (Paris : Édition la Découverte, 1992), 118.

266 David Vaughan-Whitehead, Albania in Crisis (UK: Northampton, 1999), 6.

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CCoonncclluussiioonnss

The communist regime in Albania was established in 1945 and lasted until

1991, when it collapsed under the pressure of student movements aiming at

democratic transformation. Despite the obvious raptures and discontinuities between

the communist regime and the new democratic post-communist regime, there are also

numerous continuities and similarities. Both regimes derived their legitimization from a

founding event: the communist regime with the liberation of Albania from the Italian

and then Nazi forces, and the democratic regime with the collapse of communism. The

communist leaders punished the members of the National Front (Balli Kombëtar), in

order to rule Albania by themselves; the democratic leaders imprisoned some of the

post-holders of communism when they took power. Beyond political features, which of

the two systems was more profitable for the Albanian state in terms of economic

development?

A common guess would be that the democratic government favored economic

development. On the contrary the communist regime had rather remarkable progress

in the industrialization of the country despite the high cost that the process of

industrialization had. This led to stability in contrast to turmoil and recession of

transition. The Albanian communist regime is mostly known for its negative sides, such

as purges, lack of human rights, and total control of people’s life. These reasons

impeded further research on economic development, in particular the industrialization

aspect, which is the focus of my thesis. My analysis explores the national and local

level of the industrialization process, tracking the models implemented, asking to what

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extent they were copied from the Soviet Union, evaluating the outcome of these

models’ implementation

Post-war Albanian leaders adopted the Soviet political model and established a

totalitarian regime. This option was however forced by the outcome of World War II.

The new leaders of the communist regime in the making aimed at ameliorating the

economic circumstances of Albania. But as they inherited a poor country, there was

the necessity of obtaining external economic support. The only available assistance

came from the Soviet Union, but it was conditioned on the adoption of the communist

political regime. Thus, the Western decision that Eastern countries would be

abandoned to the Soviet Union’s sphere of influence, and the lack of Western funds to

improve the economic circumstances of Albania made the Enver Hoxha rely on Soviet

aid and emulate the Soviet model of development.

Consequently, Albanian communist leaders commenced a campaign for the

transformation of Albania into an industrial country. As documented in the thesis, the

models they used to fulfill their aims were copied from the Soviet Union. Mr. Ramiz

Alia, in his interview, acknowledged this fact. Before considering the case of Albania, it

is of academic importance to trace the origins of these models. These models in reality

were not just being applied for the first time in Soviet Union as the Soviet leaders

observed them in USA and then they attempted to adapt them in accordance to the

Soviet circumstances. After Soviet Union succeeded in transferring this model of

industrial development, and adapted it to the communist centralized system, placing

them under the control of the supreme leader, using the five-year plans, concentrating

on heavy industry, Soviet Union became the example of the fastest growing economy

in the world.

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Albanian leaders decided to implement the same models, and they assisted by

the Soviet Union with engineers, apart from the economic aid. Thus collectivization, the

five-year plans, controlled economy and heavy industry became the characteristics of

the Albanian economy during communism. But to what degree were these plans

implemented? What was the outcome for the Albanian economy? These are

disputable topics. I will analyze the factors that led to the economic flourishing of

Albania thanks to the industrialization process.

Like all regimes, the communist regime or as it was called the “Dictatorship of

the Proletariat” was based on controlled economy and central planning. The common

paradigm known about totalitarian regimes and then applied to all the others is the

leader who controls every aspect and who takes all the decisions. But one of the

ministers of Industry in his interview asserted that Mr. Hoxha did not dictate any

decisions, the decisions were just in accordance with the ideology. Mr. Alia specified

the role of Mr. Hoxha in terms of the ideology to be followed. Subsequently Mr. Alia

came up with the State Planning Commission, as formulator of the five-year plans and

as controller in terms of fulfilling these plans. Thus the formulation of the five year

plans was done form the State Planning Commission and these plans passed just for

approval in the Politburo. These plans that were approved were submitted to the

directors who after filling the plans had some autonomy to put into practice their

initiatives. This demonstrates that the economy of Albania during communism was not

that centralized as is thought.

The process industrialization proceeded in stages. The first stage that led to

industrialization is marked by collectivization, a campaign copied from Soviet Union.

The aim of the communist regime was the unification of all productive forces; yet,

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Albanian leaders made some mistakes in implementing the model of socialist

agriculture, mistakes acknowledged today by Mr. Ramiz Alia. According to his

testimony, communists decided to collectivize all lands, including the mountainous

northern part of Albania, a land improper for agriculture. Another mistake was related

to the enlargement of the cooperatives that were composed from these lands. He

admits that they acted wrong by enlarging them when these cooperatives were not to

be enlarged at all. The third mistake, Mr. Alia admitted was the collectivization of

private land in their entirety, not leaving farmers a small private property for their

personal use.

The other means used for the industrialization of the country were the five-year

plans. This plan was assigned to state enterprises and plants, as all economic units

became state property under communism. These five-year plans correspond to stages

of industrialization as well, aiming at one specific direction. As industry became the

main concern of the Albanian government, the regime invested in all industrial

branches.

Special emphasis was exercised on heavy industry. The main reasons for the

development of heavy industry were the achievement of economic independence and

an increase in military capabilities. Heavy industry led to the development of

constructive industry, as well. In the late 60s and the beginnings of the 70s the process

of industrial development reached its peak, concentrated on the development of heavy

industry.

A main characteristic of the industrialization of Albania is the distributive

character attempting to develop all the cities of Albania. It is interesting to note that

communist legislation regulated every aspect of life at work and the construction of the

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industrial works was reflected in the contribution of Albania. In spite of this, the political

aspect was central, since the construction of socialist Albania and the industrialization

project was reflected in the newspapers and congresses, and later on published as

books glorifying the achievements of the country.

Apart form focusing on the national level of industrialization, I have

concentrated on one case study, Elbasan, the most industrialized city in Albania during

communism. Comparing the economic circumstances of Elbasan before the

establishment of communism and after, we can clearly observe its total transformation

from an agricultural city into an industrialized one. Elbasan became the settlement for

all industrial branches, thus becoming an Albanian counterpart of Magnitogorks in the

Soviet Union. The reasons of Elbasan being the chosen city to be industrialized were:

its geographical position strategically linked with other cities, from where the raw

material was imported and the cost was low. The other reasons were the working force

potential and the raw material that it possessed.

Although numerous branches of industry were developed in Elbasan, the city

became well-known mainly for its Metallurgical plant, the most important in the country

Mr. Alia admits that the construction of the Metallurgical Plant was a gross mistake,

due to the high costs that burdened the state budget. According to Mr. Alia, the aims of

the Metallurgical Plant construction were to develop the country, to exploit the minerals

and to make Albania economically independent, and to rely on Albania’s own forces for

internal development. The plant was not viable economically: while Albania produced

13 million kWh energy per day, the Metallurgical Plant consumed 1 million kWh per

day. That was an expenditure in vain, according to Mr. Alia, because Albania was not

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producing any cars or tractors. Consequently, he believes that they would have done

better to develop light industry instead.

As part of the industrial development of Albania, Elbasan came to the limelight

and its development was very much discussed in the media and especially in relation

to the political development as well. The entire process of its transformation, the

successes of every year and every plan became the object of various newspaper

articles and TV programs as well, where all the glory went to the people and the party.

How much did Albania and Elbasan profit from this industrialization process? In

figures, the achievements of the regime were impressive. Minerals and related

products accounted for three quarters of its total exports. Albania boasts of producing

23 minerals commercially, but in reality everything except the production of chrome,

copper, nickel, and oil is uneconomic by market criteria if labor and other costs were

properly calculated. Since the late 1970s Albania has been the world’s third largest

producer of chrome. Its 14 mines clustered along the Yugoslav border have supplied

about 10% of the total world output. It has been able to produce chrome, nickel, and

cobalt as by-products relatively cheaply thanks to the ample supply of power from the

hydroelectric stations. After the break with the Soviet Union in 1961, China stepped in

not least because it needed an alternative source of chrome previously purchased

from the Soviet Union and financed the building of new power stations. This allowed a

rapid increase in the production of chrome and copper. A copper wire and cable

factory was built in Shkodër in the North of Albania. Not just this, but Albania exported

energy, the imported products were lowered during the communist era and moreover,

the economic circumstances of Albania developed. As far as Elbasan is concerned, it

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became an important city, the number of population grew, the incomes augmented and

moreover, it had a highly employed population.

As in the other ex-communist countries, the communist regime collapsed in

Albania, even if with a two year delay (1991). This delay is due to the peculiarities of

the Albanian economic policy: Albania continued to preserve the Stalinist models and

did not switch to the Khrushchevite models of governing. What happened with the

establishment of the democratic government in Albania? What was the fate of the

industrial enterprises built during communism, and as such what was the outcome of

the new political direction? Inspired by democratic ideals, the new leaders decided to

break completely with the communist period during the takeover moments. The motto

for them was “Let’s destroy the old”267, meaning everything built during communism.

Most of communist enterprises and plants were ruined, including the ones in Elbasan.

What remained was later on privatized and treated as a business, which pays taxes to

the municipality of Elbasan and nothing more. Heavy industrial units ceased to exist as

there was no raw material, no one took care of them and the government did not

reconstruct them. The outcome of this new democratic regime thus directly

contradicted the policy of the communist regime. Social consequences are dramatic:

unemployed is growing, the country became dependent on imports, the GDP is at a

very low level, and the standards of living decreased. While during the communist rule

Albania exported energy, supplied enterprises, the plants and individual consumers,

nowadays Albania imports energy and it is always in an energy crisis, making even the

individual consumers lack energy by graphing the time as well.

267 Rilindja Demokratike Newspaper,1991

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As a final conclusion I can say, not by romanticizing the period but by trying to

evaluate it from the point of view of a historian, that communist Albania underwent a

complete economic development and the Soviet models were implemented to a high

extent. Although mistakes were made, which cost Albania much at that time, the

country had a stable economy and social system. In this sense, I would like to reiterate

the hope of the leader of Albania, Mr. Enver Hoxha, for the amelioration of Albanian

economic situation, which until now did not become true:

Let’s highly protect what we have succeeded, to developit consequently and to leave to the future generations astronger than ever Albania, … an Albania to live anddevelops in the centuries…I am convinced that thepeople will know how to host our glorified flag, how tohonor and raise the prestige of Albania in the world…268-Enver Hoxha

The communist legacy still hunts Albania and the process of transformation proved to

be long and arduous, consequently it is visible a slight nostalgia of people for

communism, although they never want it back as a regime.

268 Ramiz Alia, Enver Hoxha, 1908-1985, Tiranë: Botim i institutit të Studimeve Marksiste – Leninistepranë KQ së PPSH, 1988. Enver Hoxha “Ta ruajmë si sytë e ballit gjithçka kemi aritur, ta zhvillojmë mekonsekuencë më tej, t’u lëmë brezave të ardhshëm një Shqipëri kurdoherë më të fortë…një Shqipëri qëtë rrojë e të përparojë në shekuj. Jam I bindur se populli dhe partia lart e më lart do ta mbajnë flamurintonë fitimtar, lart e më lart do ta ngrenë nderin, prestigjin dhe emrin e Shqipërisë në botë”

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BBiibblliiooggrraapphhyy

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